The stock market regulator has approved the draft prospectus of an open-end mutual fund named "ACACIA SRIM Balanced Unit Fund", the initial targeted size of which is Tk 500 million.
The approval came on Wednesday [January 17] at a meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC), presided over by BSEC Chairman Prof. Shibli Rubayat Ul Islam, according to a press release.
Of the targeted size, the sponsor of the fund has provided Tk 50 million (10 per cent of total fund) while the remaining Tk 450 million will be collected from general investors by selling its units.
The face value of each unit of the fund is Tk 10.
The ACACIA SRIM Ltd is working as the asset manager while Sentinel Trustee and Custodial Service Ltd is acting as trustee and custodian of the open-end mutual fund.
A mutual fund is a professionally-managed investment scheme usually run by an asset management company that pools money from investors and invests their money in stocks, bonds and other assets. Depending on the profits earned, investors are then paid back in the form of dividends.
An open-end MF having no specific tenure is floated with an initial size which is then expanded over time through the issuance of new units.
One can buy units of open-end mutual funds from a fund manager's office on the basis of its net asset value. Similarly, investors can sell off the units at any time at prices based on its current net asset value.
Presently, there are 37 closed-end mutual funds listed with the Dhaka Stock Exchange (DSE) and 90 open-end mutual funds.
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