Policy support needed for mutual fund industry : Experts

The mutual fund industry needs to be revived with policy support to improve the health of the capital market, experts said at a meeting at the ICB head office.
"We are lagging behind neighbouring countries in this regard. Everyone needs to work together to develop the mutual fund industry," said Md. Abul Hossain, managing director of Investment Corporation of Bangladesh (ICB).
He spoke at a meeting on Wednesday on future prospects and challenges facing the industry, according to a statement.
Mr Hossain said the contribution of the mutual fund industry to the gross domestic product (GDP) is negligible.
The securities regulator should move forward with a positive attitude so that the sector helps develop the market, said Professor Abu Ahmed, chairman of ICB.
The state-run corporation has been supporting the capital market through funds received from the Bangladesh Bank and its own fund since 2010 at the cost of its own financial health.
The chief executives officers (CEOs) of various Asset Management Companies, the CEOs of the three subsidiaries of ICB -- ICB Securities Trading Company, ICB Asset Management Company and ICB Capital Management, along with general managers of ICB, were present at the meeting.
The chief executive officers of the asset management companies reached a consensus on the development of the mutual fund industry through transparency and accountability in the sector and by gaining confidence of the investors.
They recommended various measures to address the problems such as high taxation on mutual funds, imposition of various conditions on investment from mutual funds, interference of various groups in the capital market, and non-digitalization of the mutual fund industry.
Meanwhile, Finance Adviser Dr. Salehuddin Ahmed also spoke about revival of the mutual fund sector and the matter of providing advisory services to small investors at a meeting with the Bangladesh Securities and Exchange Commission on Wednesday.

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