Southeast Bank to float Tk 1.0b mutual fund
Thursday, 23 April 2009
FE Report
Southeast Bank Ltd Wednesday joined the 'rally of disclosures' by the private commercial banks and financial institutions to float mutual funds, an instrument which are being considered risk-free investment tools in the stock trading.
Southeast Bank on the day disclosed that it is going to float a mutual fund worth Tk 1 billion subject to the approval from the Securities and Exchange Commission (SEC).
Earlier in recent months, Prime Bank Ltd, Eastern Bank Ltd (EBL), Trust Bank Ltd, IFIC Bank Ltd, Mercantile Bank Ltd and Prime Finance and Investment Ltd disclosed to float closed-end mutual funds subject to the approval of the SEC.
Of them, the sizes of the proposed mutual fund of Prime Bank Ltd, EBL and IFIC Bank are Tk 1.0 billion each while the Trust Bank's size will be Tk 2.0 billion.
Non-banking financial institutions and nationalised commercial banks are also striving to float mutual funds.
A closed-end mutual fund has a set number of shares issued to the public through an initial public offering (IPO). These funds have a stipulated maturity period generally ranging from 3 to 15 years.
More mutual funds means more demand side will be created for long term investment, which will help stabilise the market, analysts said.
The Grameen One Scheme Two Mutual Fund amounting to Tk 1.25 billion until now is the largest mutual fund and the ICB 2nd NRB Mutual Fund the second largest one of Tk 1.0 billion.
Professionally managed, innovative and quality mutual funds will meet the growing demand of investors in the market, an expert said adding that mutual fund helped stabilise the market as it is managed by the professionals.
Currently, a total of 17 mutual funds are listed with the bourses. Of them, ICB and its subsidiaries manage 13 mutual funds, AIMS Bangladesh three and BSRS one.
Mutual funds in the neighbouring countries of Bangladesh account for more than 40 per cent of the total market capitalisation while in Bangladesh mutual funds contribute only 5.54 per cent of the total market capitalisation.
The combined issued capital of the mutual funds listed with the bourses is worth $ 48 million or Tk 3.32 billion and their market capitalisation is only 5.54 cent of the total market capitalization.
Southeast Bank Ltd Wednesday joined the 'rally of disclosures' by the private commercial banks and financial institutions to float mutual funds, an instrument which are being considered risk-free investment tools in the stock trading.
Southeast Bank on the day disclosed that it is going to float a mutual fund worth Tk 1 billion subject to the approval from the Securities and Exchange Commission (SEC).
Earlier in recent months, Prime Bank Ltd, Eastern Bank Ltd (EBL), Trust Bank Ltd, IFIC Bank Ltd, Mercantile Bank Ltd and Prime Finance and Investment Ltd disclosed to float closed-end mutual funds subject to the approval of the SEC.
Of them, the sizes of the proposed mutual fund of Prime Bank Ltd, EBL and IFIC Bank are Tk 1.0 billion each while the Trust Bank's size will be Tk 2.0 billion.
Non-banking financial institutions and nationalised commercial banks are also striving to float mutual funds.
A closed-end mutual fund has a set number of shares issued to the public through an initial public offering (IPO). These funds have a stipulated maturity period generally ranging from 3 to 15 years.
More mutual funds means more demand side will be created for long term investment, which will help stabilise the market, analysts said.
The Grameen One Scheme Two Mutual Fund amounting to Tk 1.25 billion until now is the largest mutual fund and the ICB 2nd NRB Mutual Fund the second largest one of Tk 1.0 billion.
Professionally managed, innovative and quality mutual funds will meet the growing demand of investors in the market, an expert said adding that mutual fund helped stabilise the market as it is managed by the professionals.
Currently, a total of 17 mutual funds are listed with the bourses. Of them, ICB and its subsidiaries manage 13 mutual funds, AIMS Bangladesh three and BSRS one.
Mutual funds in the neighbouring countries of Bangladesh account for more than 40 per cent of the total market capitalisation while in Bangladesh mutual funds contribute only 5.54 per cent of the total market capitalisation.
The combined issued capital of the mutual funds listed with the bourses is worth $ 48 million or Tk 3.32 billion and their market capitalisation is only 5.54 cent of the total market capitalization.