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Our Bureau

Mumbai, July 30 Mumbai-based financial services firm Brics Securities Ltd on has announced the launch of a capital guarantee portfolio scheme “BRICSecure NLD 1” that would generate return on investment by hedging in the derivative market besides ensuring capital protection by investing in debt instruments.

Brics Securities, previously known as Birla Sun Life Securities, is a part of J.V. Gokul group, engaged in tea trade business. The scheme will be operated by Brics Portfolio Management Service, a subsidiary of Brics Securities.

“The portfolio will invest in Nifty-linked derivative instruments and debt instruments in a manner that the investment objective of the portfolio scheme i.e., 100 per cent principal protection at maturity and generating capital appreciation is met,” said Mr Anand Tandon, Director, Equities, Brics Securities Ltd, while briefing the media.

“We believe that the scheme is the appropriate investment instrument for those who have relatively low risk appetite, but at the same time is eager to enjoy higher returns compared to fixed income investments,” said Mr Tandon.

“The product has been specially designed for a market situation prevailing today and will invest up to 80 per cent in the debt instruments to assure guaranteed return and up to 20 per cent will be deployed in Nifty-linked derivative instruments (options) for generating a return on investment,” said Ms Vaishali Pitale, VP-Private Client Group, Brics Securities.

The scheme has been designed in a manner that an investor in the scheme will get a maximum return of close to 59 per cent if the Nifty advances by up to 35 per cent from the starting level, but return will be a flat 22 per cent if it goes by more than 35 per cent, because of the hedging of positions in the derivative (options) market.

The close-ended scheme has tenure of 18 months. The scheme is open till August 11 for investment. The minimum investment in the scheme is Rs 10 lakh and in the multiples of Rs 1 lakh thereafter.

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