Easy Investment Plan (EIP)

Regardless of age, income and experience, like a deposit pension scheme Easy Investment Plan (EIP) facilitates a simple and more convenient way of investing in the stock market.

What exactly is EIP?

  • An EIP is a specific amount, invested at regular intervals for a certain horizon e.g. two/three/four/five years.
  • It allows the investor to buy securities as per a pre-decided frequency; the investor has the complete discretion to decide the amount and also the stock to invest in.
  • EIP utilizes the time-tested methodology of BDT cost-averaging method, which allows an investor to minimize risk and to maximize the return for investment as more number of shares is bought in a falling market and fewer shares are bought in a rising market.
  • Automatically receive the reminder to deposit and buy your selected stock at your prescribed time throughemail/SMS.

How does an EIP work?

  • Decide how much you want to invest on a regular basis in a cheap valuation company supported by the research.
  • Determine how often you wish to purchase your shares of the company.
  • Set an investment horizon depending on your investment goal.

EIP Reduces the risk of market timing

It is said that while an amateur goes broke by taking larger losses, a professional goes broke by taking small profit. It is the most prevalent behavioral bias of an investor to be swayed by market mania.

Though it is not impossible, market timing is very difficult task. But the beauty of cost averaging is an automatic market-timing mechanism that eliminates the need to time one's investments. By purchasing shares of stock in small amounts over time rather than one in larger lump sum, you reduce the volatile swings in the market price. Stocks are vulnerable to systematic risk but EIP minimizes the effects of investing in volatile markets.

Benefits of EIP

  • EIP is very convenient: Simple steps to invest in an EIP:
    • Open an BO with us.
    • Fill the required details.
    • Ensure availability of funds.
    • Access LBSL recommended stock picks based on comprehensive research reports.
    • Monitor you EIP position online.
    • Automatically know when it's time for you to purchase shares of EIP stock through an email or SMS reminder.
  • Disciplined Investing: An ordinary investor is not like a rational computer like profit maximizing machine rather he has emotions, impulses, fears, feelings and information processing limitation that beget different types of bias. But a successful and smart investor always remains disciplined in any market situation. It's the key to investing success. Regular investment makes one disciplined in their savings and also leads to wealth accumulation. Systematic investing is a time-tested discipline that makes it easy to invest automatically.
  • Capital Gain: Possibility to get capital gain in early surrender.

Investment Tax Benefit from investing in shares

Investment in the shares of listed companies is subject to 15% tax rebate on the value of investment up to BDT1.5 crore or 30% of total income, whichever is lower. The rebate is applicable on the total value of the tax payable by any individual. For example, if the total taxable income of an individual is BDT 720, 000; he is subject to paying BDT 60, 000 taxes. If the individual invests BDT 216, 000 in stocks, he will be entitled to enjoy BDT 30, 000 tax rebates. The calculations are shown in the following table;

Taxable IncomeBDT 720,000
Tax payable without investmentBDT 60,000
If 30% of total Income is investedBDT 216,000
Tax rebate @ 15%BDT 32,400
Actual tax payable if investedBDT 27,600
Total Income after Tax if there is investment BDT 692,400
Total Income after Tax if there is no investment BDT 660,000
Total Income after tax is maximized if invested in shares5%
Regular investment through EIP can provide investment tax benefit

Terms & Conditions

  • EIP is a facility offered by LBSL on its trading platform whereby the client authorizes LBSL to place buy transactions in specific securities in predetermined quantities or amounts at periodic intervals over a fixed period of time.
  • The client agrees that an EIP request can be placed for only one security at a time.
  • Frequency shall mean the time intervals specified by the clients in the EIP request placed under this Facility.
  • Minimum Period shall mean the period under the Facility for which the EIP request can be placed.
  • Order Placement day shall mean the day on which EIP orders will be placed by LBSL as per the frequency and other order related parameters selected by the client.
  • The no. of units to be purchased would be arrived at by dividing the net investible amount by the market price prevailing at the time order is entered by LBSL.
  • Client can revoke the service by giving a 3 day prior notice to the specified date for execution of trade.
  • The Client agrees not to hold LBSL liable for any loss or damage incurred or suffered by it due to any delay, error, defect, failure or interruption in the provision of Facility arising from or caused by any reason whatsoever.
  • LBSL, at its sole discretion, reserves the right to either temporarily or permanently, withdraw or suspend the EIP Facility at any time without giving any notice or assigning any reason for the same, whether in respect of one or more Clients.
  • The client agrees that LBSL reserves the right to decide the timing for placing the orders on the Order placement day as per the frequency under the Facility.
  • EIP facility is available for first 15 days of a month. In case the chosen date turns out to be a non-working day for the scheme, the EIP will be processed on the immediate following working day.

Other value added services

  • Email Alert: You will get instant email notification about any news for stock you pick.
  • Market Pulse: Exclusive access to Market Pulse, the most preferred and enriched business publications of Bangladesh.
  • Corporate Events Calendar: The Corporate Events Calendar will allow you to see past events and prepare yourself for the announced upcoming events. The events have been color coded on the calendar view so that different events have different colors to make it visually more differentiable. The event days are highlighted on the calendar view. When the cursor is taken on a particular highlighted day, a label will appear naming the occasion. The calendar is designed such that it categorizes the events and presents them in a user friendly format, so that they could be accessed anytime and anywhere.
  • LBSL Client Login: This is the latest addition of LankaBangla financial portal where you can visit your investment account details and take decision.
  • LBSL Research Report: You can get access to Research Reports published by LankaBangla Capital Market Research Team. Here you can get Daily, Weekly, Monthly, Sector and Macroeconomic reports which provide expert insights and ideas on Bangladesh stock market and macroeconomic environment.
  • Newsletter: We provide day end market updates to you through our Newsletter.
  • Real Time Market Watch: Incorporate all the stocks with their current price and change direction (up, down and unchanged).