Fund manager Investit Asset Management has taken a move to launch its first open-ended mutual fund named Investit Growth Fund.
The initial size of the fund is Tk 250 million, with the sponsor of the fund, Investit Asset Management, contributing Tk 25 million while the rest will be sourced from individual and institutional investors through the sales of its units.
The fund size may be expanded in the future, subject to the trustee's approval, according to a press release.
The subscription of the growth fund will begin on January 1 next year with a face value of Tk 10 per unit.
The minimum investment amount is Tk 5,000 for individual investors, including retail and non-resident Bangladeshis, and Tk 50,000 for institutional investors.
Mutual funds pool money from investors to channel it into securities, such as stocks, and bonds. Depending on the profits earned, investors are then paid their share as dividends.
Open-ended mutual funds are not listed in the stock market, but one can buy them from a fund manager's office on the basis of its net asset value. Similarly, investors can sell off fund units at any time at prices based on its current net asset value.
This new fund is designed to provide investors with superior risk-adjusted returns through a focused investment strategy in growth stocks, reads the statement.
"Our fund is dedicated to maximizing long-term wealth for our valued investors through strategic investments in rigorously researched, high-quality growth stocks," said Mohammad Emran Hasan, managing director and CEO of Investit Asset Management.
"We believe our commitment to integrity and a client-focused approach provides a strong foundation for success. We view current market conditions as an opportunity to construct well-diversified portfolios.”
"Our firm has demonstrated its confidence in the fund by investing our own capital as a sponsor," he added.
