11/23/2008

ASSIGNMEN
T ON

MUTUAL FUND

Mutual Fund | Ali

Assignment on ICB Mutual Fund in Bangladesh

Submitted To:
Afia Akter Senior Lecturer Course instructor of Finance Department of Business Administration Northern ni!ersit"# Ban$%adesh Course &it%e' Financia% (nstitution and )arket Course Code' F(N*3301 Section: A

Submitted By: Md. sha!ue Ali "honda#a$ ID%BBA&'&(&(')*

Date of submission: November 23, 2008

1.1 What is Mutual Fund? Ans: )utua% Funds are a%so kno+n as financia% (nstitution that poo% financia% recourses
and in!est in di!ersified portfo%ios, Se%% to share to raise fund, se fund to purchases portfo%io securities on capita% market and mone" market, &he issued capita% of a )utua% Fund is %imited# that is# a )utua% Fund offers a %imited num-er of certificates for sa%e to the pu-%ic, &he amount of capita% and the num-er of certificates of each )utua% Fund remains unchan$ed, )utua% Funds are independent of one another, A )utua% Fund -ein$ %isted is traded on the Stock ./chan$es, 0rice of )utua% Fund certificates after (01 is determined on the Stock ./chan$es throu$h interaction of supp%" and demand, &he market price of a )utua% Fund certificates is a!ai%a-%e in Stock e/chan$e 2uotations and in ne+spapers,

1.2 How to buy existing Mutual Funds? Ans: An in!estor can purchase an" of the e/istin$ ei$ht (CB )utua% Funds certificates
throu$h the Stock ./chan$es at the pre!ai%in$ )arket 0rice, 3o+e!er# if an in!estor -u"s )utua% Fund certificates throu$h the Stock ./chan$es he/she must -e carefu% to su-mit the certificates a%on$ +ith du%" fi%%ed*in transfer deed at (CB 3ead 1ffice to ensure that the certificates are re$istered in his/her name,

1.3 Why invest in Mutual Fund is is! less?

Ans: )utua% Fund is a reco$ni4ed princip%e that di!ersification of in!estment reduces
risk, An indi!idua% ma" not ha!e the time# e/pertise and resources to undertake such di!ersification, 3ere arises the ad!anta$e of a )utua% Fund, )utua% Funds poo% the sa!in$s of a $reat num-er of in!estors and make in!estments in a +ide arra" of securities, (n Ban$%adesh (CB has pioneered )utua% Funds for the sake of in!estors and of the capita% market, (f one +ants to -e a %ess risk taker and a %on$*term in!estor5 can consider in!estin$ on )utua% funds, 1" educe you# #is!s: )utua% Funds di!ersif" portfo%io -" in!estin$ in !arious securities 6 minimi4e the risk -ecause )utua% funds are not %ike !o%ati%e as other secondar" market shares, 2" Maxi$i%e the secu#ity and ex&ectation on invest$ent o&&o#tunities: &he fund mana$ers +ith the stron$ research take e/p%ore ne+ in!estment options make a!ai%a-%e opportunities for "our in!estments to $ro+, (n!estments +i%% -e secured +ith a %ess risk and moderate returns, 3" 'i(uidity: )uic! access to you# $oney and )utua% Funds can -e -ou$ht and so%d on an" -usiness da",

*" A++o#dability: 1f course# "ou don7t need a %ot of mone" to in!est in mutua% fund as the minimum in!estment in mutua% fund starts from 1#000 taka, A )utua% Fund -ecause of its %ar$e amount a%%o+s e!en a sma%% in!estor to take the -enefit of its in!estment strate$", ," 'ow -osts: )utua% Funds are a re%ati!e%" %ess e/pensi!e +a" to in!est compared to direct%" in!estin$ in the capita% markets -ecause the -enefits of sca%e in -rokera$e# and other fees trans%ate into %o+er costs for in!estors, ." /ax 0ene+its: &he ta/ -enefits that )utua% Funds in!estors en8o" at the moment are the treatment of %on$*term capita% $ains, Dou-%e ta/ation can -e a!oided -" in!estin$ in )utua% funds for %on$*term, 1" /#ans&a#ency: &he in!estor $ets re$u%ar information on the !a%ue of his in!estment in addition to disc%osure on the specific in!estments made -" the fund# the proportion in!ested in each c%ass of assets and the fund mana$er9s in!estment strate$" and out%ook,

1.* What is the 2a$e o+ 3-0 4nit Fund 5 Mutual Funds? Ans: 2a$e o+ 3-0 4nit Fund 5 Mutual Funds in 0angladesh:
Sl. No Name of The Mutual Fund Date of Issuance Address of Registration Certificate )ana$in$ Director 6 C.1 A()S First ;ranted )utua% 2<,01,2000 Fund Chandrashi%a Su!astu &o+er =>th F%oor?# @A/1# 0anthopath =.ast?# Dhaka*120> )ana$in$ Director 02 ;rameen )utua% Fund 1ne 2<,08,2001 ;rameen Bank Comp%e/# )irpur*2# Dhaka*121@ Chief ./ecuti!e 1fficer 0 (CB A)CL Fund 1
st

01

)utua% 2:,0>,2003 8# Ba8uk A!enue =1>th F%oor?# Dhaka*1000 *D1* *D1* *D1* *D1* *Do

0! 0" 0# 0$. 0% %th IC& Mutual Fund

(CB A)CL (s%amic )utua% 2:,08,200: Fund (CB A)CL nit Fund 03,0@,2003

(CB A)CL 0ension 3o%der 1>,0A,200: nit Fund (CB A)CL First NBB 01,11,200@ )utua% Fund (CB A)CL Second NBB 1<,03,2008 )utua% Fund )ana$in$ Director 8# Ba8uk A!enue =1>th F%oor?# Dhaka*1000

>

)ana$in$ Director 1 &SRS Mutual Fund

st

BSBS Bha-an =1>th F%oor?# 12# Ca+ran Ba4ar# Dhaka*121>

1., How the dividend &ay$ent statistics o+ Mutual Fund? Ans:

ate o+ the 6ividend &e# -e#ti+icate 7/a!a"

FD

(CB )utua% 1 st Funds 20 20 20 2> 3> 38 :1 :8 :A :A 3> 31

2 nd 3 rd : th > th @ th

< th

8 th

1A80*1A81 1A81*1A82 1A82*1A83 1A83*1A8: 1A8:*1A8> 1A8>*1A8@ 1A8@*1A8< 1A8<*1A88 1A88*1A8A 1A8A*1AA0 1AA0*1AA1 1AA1*1AA2

21 23 21

2>,> 22,> 21,> 28 2A 2A 22 22 2>,> 23 2@ 2@ 1A 1A 23,> 20,> 1>,> 23,> 20,> 13,2> 1< 18 10 11 @ @

1AA2*1AA3 1AA3*1AA: 1AA:*1AA> 1AA>*1AA@ 1AA@*1AA< 1AA<*1AA8 1AA8*1AAA 1AAA*2000 2000*2001 2001*2002 2002*2003 2003*200: 200:*200> 200>*200@ 200@*200<

31,> :> >0 @0 <0 <0 100 12> 1<0 1<> 180 200 210 210 1A0=1B'2#2:0?

21 2< :0 :2 :> 30 32 3> :0 :2 :> >0 >> >> @2

18 22 2< 28 38 3> 38 :0 :> >0 >0 >0 >2 >2 >@

1< :0 :1 :1 :> 32 3> 3@ 38 :0 :0 :> :8 :8 >2

12 2> 28 30 3> 22 20 21 23 2: 2: 2: 2< 2< 33

* 1@ 18 20 2: 18 1> 1@ 1< 18 21 1: 13 13,> 1: 18 12 12 12,> 13

1<,>0 1:,>0 13,>0 1<,>0 1:,>0 13,>0 1<,>0 1> 18,>0 1@ 18,>0 1@ 23 1: 1> 1>

22,>0 18

&he net income recei!ed on in!estments of Funds on account of di!idend# -onus# interest# capita% $ain etc, are distri-uted amon$st the Certificate 3o%ders as per decision of the Board of Directors of (CB, Board dec%ares such income in the form of di!idend at the end of Eu%" each "ear, Di!idends dec%ared -" (CB in the past on the )utua% Funds +ere !er" attracti!e, &he "ear*+ise per certificate di!idend performance of the Funds is $i!en the a-o!e ta-%e, 6ividends on 3-0 4nit Fund 5 Mutual Funds +o# the yea# 28819 288::

<

&his is for information of a%% concerned that the Board of Directors of the (n!estment Corporation of Ban$%adesh in its fund re%ated meetin$ he%d on the 30th Eu%"# 2008 appro!ed Di!idends on (CB nit Fund 6 (CB )utua% Funds for the "ear ended 30th Eune 2008 as fo%%o+s'

S% No 1, 2, 3, :, >, @, <, 8,

Name of Fund First (CB )utua% Fund Second (CB )utua% Fund &hird (CB )utua% Fund Fourth (CB )utua% Fund Fifth (CB )utua% Fund Si/th (CB )utua% Fund Se!enth (CB )utua% Fund .i$hth (CB )utua% Fund

Di!idend 0er Certificate of =&k,? 100,00 each 2@>,00 <>,00 @>,00 @0,00 :>,00 30,00 30,00 2>,00

1,

(CB nit Certificate,?

Fund

=&C,

0er

20,00

&he record date for a%% (CB )utua% Funds +i%% -e 1:*08*2008, &he certificate ho%ders of nit Fund +hose names appeared in the respecti!e Be$isters on 30*0@*2008 +i%% -e entit%ed to the di!idend, /#aded issues o+ $utual +unds 2a$e and othe# #elated in+o+$ation is geven below in /able:

/he 6aily Sta# /#aded issues o+ $utual +unds 2ove$be# 28; 288:
Name of the Mutual Funds (st )#* M F+,A 3 )#* M F+,A 5rd )#* M F+,A 1 )#* M F+,A . )#* M F+,A 4th )#* M F+,A / )#* M F+,A 2 )#* M F+,A (st *S6S M F,A A)MS ( +,A )#* AM#L (st M F+,A )#* AM#L )slamic (st M F+,A Grameen M F One+,A )#* AM#L ( N6*+,A )#* AM#L 3nd N6*+,A Grameen(7 Scheme3+,A
st st th th th th nd

FV/ML TK/NO (--/. (--/. (--/. (--/((--/((--/((--/.(--/.(--/.(/3.-(--/.(--/.(-/.-(--/.(--/.(-/.-#losin& .(--!.(/0.!-0/4!/. 0/1!-0/-!.105!.4--!-12(!-2-(!.(5!.4 5/4!.340!/. 2.!(3/(!3. 3-5!3. .1!4-

Price #n& %" -!-/ 1!-0 ,-!(. ,-!32 (!-0 -!.( ,-!..!44 ,(!5. ,-!30 (!12 -!4. -!(3 -!21 -!10 -!5/

Turnovr Pre!da' .-0/!-(/31!.0/2!3. 0/4!/. 04-!-10(!-4-5!-1..!3. 2(3!.(5!45/(!-342!-2.!-340!-3-3!3. .1!1share 1. .. (-3/3.(-34.535.-30.35-3((--5/.32--.0-1.--

Last AGM (./-2/-/ (./-2/-/ (./-2/-/ (./-2/-/ (./-2/-/ (./-2/-/ (./-2/-/ (./-2/-/ ,,,,,,,,,, 0/(-/-/ (./-2/-/ (./-2/-/ 3./-5/-2 ,,,,,,,,, ,,,,,,,, ,,,,,,,,

EPS TK!" 31-!-/4!(40!(45!(1(!-34!-3/!.33!((5!(-!54 31!0(1!05!.3 .!-3 ,,,,,, ,,,,,,

#$PS %" (043!-.4!-.3!-55!-35!-35!-(2!-(-!-(-!-3-!-(3!-30!-,,,,,,,, ,,,,,,,, ,,,,,,,,