The objective of Alhamra Smart Portfolio (ALHSP) is to provide opportunity to the Unit Holders to earn potentially high return by taking stock market exposure while minimizing risk to capital.
The allocation plan will allocate funds between ALHIIF (Islamic Income) and ALHISF (Islamic Equity) in a systematic way. ALHSP will aim to invest 75:25 between ALHIIF and ALHISF at such frequency as decided by the Management. The strategy aims to invest more in ALHISF when the stock prices drop and cash out when the prices increase after a certain time period. Market timing is done in a systematic way in order to improve the overall return profile for the investors with much lesser volatility. At the same time the portfolio is maintained with 75% of the value in medium risk scheme i.e. ALHIIF, thereby reducing the risk as compared with an all equity portfolio. 75% fixed income allocation is aimed at providing cushion in the periods when stock market does not perform well while adding to higher absolute returns in higher return periods of stock market.
Provide positive real return with less volatility.
Reduces the element of market timing and invests in a systematic way.