This presentation is about the most critical part of Investment policy that is known as Mutual fund Investment. At present world it is too difficult to take right decision about investment in mutual funds.

2. GROUP MEMBERS
Introduction ID
22-015
22-059
22-122
22-220
22-254
22-225
Anamika
Hore
Sagufta Bushra Mishma
Tahera Akhter
Irin Afrn
Nadia Chowdhury Riya
Team:- Galaxy
Mallika Rahmann

3. What is MUTUAL FUND?
A mutual fund is a type of financial vehicle made
up of a pool of money collected from many
investors to invest in securities such as stock,
bonds, money market instruments and other assets.
Mutual Funds are operated by professional money
managers, who allocate the fund’s asset and
attempt to produce capital gain or income for the
fund’s investors.

4. 7 Important Portfolio Characteristics
of Investing in Mutual Funds

5. Life Cycle of MUTUAL FUND
INVESTMENT

7. •The sponsor constitute the
fund by virtue of trust deedA)Sponsors
• The Trustee is the guardian of the fund and holds all
capital assets of schemes of the fund in trust on behalf
of the unit holders
• 1) Investment Corporation of Bangladesh (ICB)
• 2) Bangladesh General Insurance Company Ltd.
(BGIC)
• 3) Sandhani Life Insurance Company Ltd.
• 4) BRAC Bank Ltd.
• 5) Eastern Bank Ltd.
B) Trustee
Key Players in Mutual Fund
Operation

8. Key Players in Mutual Fund
Operation(Continued)
• It structures, operates and manages the
schemes of fund approved by the trustee
or commission.
• 1) Race Asset Mgt. Company
• 2)LR Global Bangladesh
• 3) AIMS of Bangladesh.
C) Asset
Management
Company
•It keeps the securities of the
fund in safe custody.
•1) ICB
•2) Standard Chartered Bank
(SCB)
•3) BRAC Bank Ltd. &
•4) Citibank N. A.
D)
Custodian

9. DSE sector based performance, May
2016

10. Industry Generic Strategy
When people doesn’t have any specific plan.
Less probability of success
Buy low& sell high at the right time
The
wing it
strategy
Market
Timing
Strategy
Buy & Hold
Strategy Buy, and hold them for a long time
Performance
weighting
strategy
Mix of previous 2 strategies.

11. • Make
adjustment to
NAV of fund
to pass trading
cost
• Doesn’t affect
recently or current
information.
• Charges lower
related cost.
•Estimation
of current
value when
current
price is
unavailable
.
• Applicable to
open end market.
• Based on next net
asset value.
• Mitigate
shareholder
dillusion 1)Forward
Pricing
2) Fair
Value
Pricing
Swing
pricing
Stale
pricing
Pricing Models of MUTUAL FUND

12. Industry valuation of mutual
fund.Company
name
EPS PRICE
EARNING
RATIO
NAV per
share
Profit(mn) Dividend
yield (%)
Asian tiger
sandhani life
growth
0.920 6.93 13.47 78.65 13.96
ICB AMCL
second
mutual fund
0.400 12.9 10.73 30.91 8.0
Trust bank
first mutual
fund
0.300 4.12 11.81 308.62 3.28
Southeast
bank 1st
mutual fund
0.980 7.66 15.17 140.84 9.42
AB bank 1st
mutual fund
1.04 4.18 12.04 71.48 3.33
EBL 1st
mutual fund
0.89 5.46 11.49 188.29 2.67
Industry
Average
0.62 7.81 12.40 126.21 78.51