Mutual Fund operations in Bangladesh follow a set of guidelines and regulations set by the Bangladesh Securities and Exchange Commission (BSEC). Here are some key points related to mutual fund operations in Bangladesh:
Types of Mutual Funds: In Bangladesh, mutual funds can be classified into two types: Open-End Funds and Closed-End Funds. Open-end funds allow investors to buy or sell units at any time, whereas closed-end funds have a fixed number of units and investors can only buy or sell them on the stock exchange.
Fund Managers: Mutual funds in Bangladesh are managed by fund management companies that are registered with the BSEC. The fund managers are responsible for managing the investments of the mutual fund, making investment decisions, and ensuring compliance with regulatory guidelines.
Fund Trustee: A mutual fund trustee is appointed to oversee the fund management company's operations and ensure that the fund is being managed in the best interests of the investors.
Investment Objective: Mutual funds in Bangladesh are required to have a clearly defined investment objective, which outlines the fund's investment strategy, asset allocation, and risk profile.
Unit Pricing: The unit price of a mutual fund is determined by dividing the total net asset value (NAV) of the fund by the number of outstanding units. The NAV is calculated daily by the fund management company and is based on the market value of the underlying assets of the fund.
Fund Performance: Mutual funds in Bangladesh are required to publish their performance data on a regular basis, including the fund's NAV, returns, and expenses.
Regulations: Mutual funds in Bangladesh are regulated by the BSEC, which oversees the registration, operation, and management of mutual funds. The BSEC also sets guidelines for disclosure, reporting, and investor protection.
Fees and Expenses: Mutual funds in Bangladesh charge management fees and other expenses, such as trustee fees, custody fees, and audit fees. These fees are disclosed in the fund's prospectus and are deducted from the NAV of the fund.
Investor Protection: Mutual funds in Bangladesh are required to follow strict guidelines related to investor protection, including disclosure requirements, minimum investment limits, and restrictions on related-party transactions.
These are some of the key aspects of mutual fund operations in Bangladesh. It's important for investors to carefully review the terms and conditions of mutual funds before investing and to seek professional advice if necessary.
2. Financial Markets & Institutions
Submitted To:
Md. Amin Mia
Assistant Professor
Department of Finance & Banking
Business Studies Group
National University
Presented By:
Emran Hossen
Advanced MBA (8th Batch)
Department of Finance & Banking
Registration No: 21824200017
Season: 2021-2022
3. Mutual fund is an investment vehicle
managed professionally that is made
up of a pool of funds collected from
many investors for investing in
securities such as stocks, bonds,
money market instruments and similar
assets.
