Mutual Funds confusion
Monday, 18 January 2010
A school teacher, I invest in the stock market for supplementing my income.
The recent fall in the value of Mutual Funds cost me dearly.
I bought the Mutual Funds in November on rumours that the court had allowed issuance of right shares on Mutual Funds. Within days of the Securities and Exchange Commission (SEC) deciding to appeal against the verdict the value of the funds fell sharply. I had bought AIMs Mutual Funds at Tk 28. Now it has dropped to Tk 13.50.
Many small investors like me lost more than 50 per cent of their investment in the Mutual Funds.
It is alleged that a group of manipulators who sold the Mutual Funds certificates at high prices making millions are now buying back at the low price. They are exploiting the indecision of the SEC. The indecision of the regulator benefited the manipulators in the past also.
SEC decisions on 1st BSRS and ICB 1 to 8 Mutual Funds are also confusing.
The ICB Mutual Funds were known for their good fundamentals. Return-wise, ICB outperforms AIMs.
Instead of educating the investors about the difference between good and bad Mutual Funds why should the SEC liquidate the good Funds?
If the SEC wanted to protect the interest of small investors, it would have resolved the issue long ago. Now, the SEC is keeping a complete mum on whether or not it will appeal against the verdict. The SEC is reportedly awaiting the certified copy of the verdict of the High Court decision.
But, why should it take two months for the court document to reach the SEC?
A clear picture would end manipulation and allow small investors to gain out of Mutual Funds.
Md Ismail
61/3, Lake circus, Kalabagan Dhaka
E-mail: ismsons@gmail.com
The recent fall in the value of Mutual Funds cost me dearly.
I bought the Mutual Funds in November on rumours that the court had allowed issuance of right shares on Mutual Funds. Within days of the Securities and Exchange Commission (SEC) deciding to appeal against the verdict the value of the funds fell sharply. I had bought AIMs Mutual Funds at Tk 28. Now it has dropped to Tk 13.50.
Many small investors like me lost more than 50 per cent of their investment in the Mutual Funds.
It is alleged that a group of manipulators who sold the Mutual Funds certificates at high prices making millions are now buying back at the low price. They are exploiting the indecision of the SEC. The indecision of the regulator benefited the manipulators in the past also.
SEC decisions on 1st BSRS and ICB 1 to 8 Mutual Funds are also confusing.
The ICB Mutual Funds were known for their good fundamentals. Return-wise, ICB outperforms AIMs.
Instead of educating the investors about the difference between good and bad Mutual Funds why should the SEC liquidate the good Funds?
If the SEC wanted to protect the interest of small investors, it would have resolved the issue long ago. Now, the SEC is keeping a complete mum on whether or not it will appeal against the verdict. The SEC is reportedly awaiting the certified copy of the verdict of the High Court decision.
But, why should it take two months for the court document to reach the SEC?
A clear picture would end manipulation and allow small investors to gain out of Mutual Funds.
Md Ismail
61/3, Lake circus, Kalabagan Dhaka
E-mail: ismsons@gmail.com