Investment Portfolio Management

Derech-Invest

Expertise and Performance in Investment Management

Derech Invest was founded in 2025 and specializes in investment portfolio management for a select clientele. The company is licensed as a portfolio manager by the Israel Securities Authority, in accordance with the law regulating investment advisory, financial marketing, and portfolio management services (1995).

At Derech Invest, we combine expertise, experience, and a proven ability to identify and analyze investment opportunities across global markets. Our mission is to maximize capital returns for our clients while maintaining a controlled level of risk.

Each portfolio is custom-built, tailored to the client’s specific needs and investment goals. Aware of the responsibility involved in managing capital, we are committed to upholding the highest professional standards and providing investment services that are reliable, rigorous, and fully transparent.

Our portfolio management service is intended for investors with capital exceeding 1 million ILS.

Construction and strategic management of a high-performing investment portfolio

At Derech Invest, we take a comprehensive and optimized approach to portfolio management. We combine various financial instruments—such as mutual funds, index-based products, and direct securities investments—to build diversified and high-performing portfolios.

This strategy leverages the strengths of each type of investment while ensuring maximum flexibility and agile management, perfectly aligned with the specific needs and goals of our clients.

Mutual Funds as a Core Investment Pillar

c

A custom-built portfolio, perfectly tailored to your needs

Each investment portfolio is crafted according to the client’s individual profile and specific objectives, following an in-depth process that defines financial goals, investment horizon, economic situation, and risk tolerance.

Our mission is to maximize capital returns while maintaining a well-managed level of risk, ensuring your investment strategy is both effective and personalized.

A structured and rigorous decision-making process

At Derech Invest, every investment decision is based on a thorough and methodical analysis, ensuring that each asset meets strict criteria before being included in a portfolio.

We assess the company’s business model, the quality of its management, the relevance of its products or services, its financing methods, and the returns generated by its assets and invested capital.

Particular attention is given to the company’s financial strength and the gap between its fair economic value and its market price. This in-depth evaluation process allows us to reduce risk while optimizing investment performance.

What is a fund-based portfolio?

 

The portfolios are intended for clients with capital ranging from 500,000 to 1,000,000 ILS, using an approach tailored to their specific needs and investor profile.

They are primarily managed through mutual funds and ETFs (exchange-traded funds), which provide optimal diversification and strategic asset allocation to minimize risk.
This structure helps optimize portfolio stability while taking advantage of market opportunities to maximize investment performance.

The Advantages of Fund-Based Portfolios

✔ Income accumulation – All gains, including interest and dividends, are reinvested directly into the fund.

✔ Tax efficiency – Taxes are applied only when fund units are sold (in the case of a tax-exempt fund), unlike direct investments in securities where taxation occurs at each sale.

✔ Lower fees – Typically, no commissions are charged on fund purchase or sale transactions.

✔ No double management fees – No additional portfolio management fees are applied within the fund-based portfolio.

✔ Transparency and daily tracking – Fund performance is updated daily on the Stock Exchange website, financial platforms, and the client’s account, allowing for comparison with benchmark indices.

What is a managed portfolio?

 

Portfolio management is carried out directly on the client’s bank account, with a power of attorney granted to the manager to execute transactions in line with the defined investment strategy.

The portfolio structure and risk profile are tailored to the client’s specific goals and needs, determined through an in-depth personal consultation.

To ensure efficient and responsive management, regular adjustments are made based on market developments and the client’s evolving needs.

 

Advantages of Managed Portfolios

✔ Real-time tracking – The portfolio is managed directly through the client’s bank account, offering full transparency and continuous access to all transactions.

✔ Personalized support and financial expertise – Each portfolio is built according to the client’s specific needs and goals, with expert guidance and optimized management.

✔ Clear and predictable management fees – Fees are charged monthly by the company, ensuring a straightforward and transparent cost structure.

✔ No double billing – If part of the portfolio is invested in mutual funds managed by the company as an external manager, no additional portfolio management fees are applied to those assets.

Please note

Portfolio management is carried out directly on the client’s bank account, opened at the institution of their choice. A power of attorney is granted to the investment firm to execute transactions on financial securities. The client is included in an existing framework agreement between the investment firm and the bank, allowing them to benefit from reduced banking fees.
Full transparency is provided, with access to the portfolio, its composition, and all transactions available through the bank’s website and the client’s personal account.