Portfolio management services of IDLC Finance Limited

Abstract

IDLC is one of the most influential and pioneering financial institutions in Bangladesh. As a student, hailing from a business background, it has been the most intriguing and learning experience. I had the opportunity to go out in the practical world and see the theories in practice. We did several courses which were somewhat affiliated with the concept of portfolio management during this four year time period. But the practical implementation of these ideas were always like elements of mystery to the most of us. In IDLC I was able to experience the entire process through which a portfolio is made and maintained and a lot more. The small duration of three months was not enough to know about portfolio management in absolution, but I tried and gathered as much information as I could or was granted access to, since a lot of it is to be considered as intellectual property of IDLC Finance Limited. IDLC Finance Limited is a multi-product non-banking financial institution, as it offers a wide range of financial services in the form of SME (Small and medium enterprise) products, Supplier and distributor finance, Corporate Finance, Retail Finance, Merchant banking, Brokerage service and many more. IDLC Finance basically has 3 subsidiaries, which are IDLC Investments Limited or IDLCIL, IDLC Securities Limited or IDLCSL and IDLC Asset Management Limited or IDLCAML. All these three subsidiaries provide the Merchant banking and Brokerage services to the consumers. Since I was an intern in the department of Operations under the wings of IDLCIL or IDLC Investments Limited, I was most exposed to Portfolio management and brokerage services for individual clients. Two specific products are used in order to deliver these services, first one being the IDA (Investor Discretionary Account) and the second one would be DPM (Discretionary Portfolio Management). Further in the report both of these services are explained in an elaborative manner. This report thus explains these products and discusses the profitability of both and at the very end of the report, comparison amongst the two is shown and explanations along with suggestions is given in order to get an all-round view of the entire report