BSEC allows one more open-ended MF

The stock market regulator has approved the draft prospectus of an open-ended mutual fund named ICL INCTL Shairah Fund with an initial target size of Tk 250 million.

The approval came on Monday at a meeting at the office of the Bangladesh Securities and Exchange Commission (BSEC), presided over by Chairman Prof. Shibli Rubayat Ul Islam, according to a press release.

Of the total initial investment, the sponsor of the fund - Impress Newtex Composite Textiles Ltd - has provided Tk 25 million while the remaining Tk 225 million will be collected from general investors by selling units.

The face value of each unit is set at Tk 10.

Impress Capital Ltd is acting as the asset manager while Bangladesh General Insurance Company and BRAC Bank are trustee and custodian of the fund respectively.

A mutual fund is a professionally-managed investment scheme usually run by an asset management company that pools money from investors and invests 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.

Open-ended mutual funds are not listed in the stock market but one can buy units of such funds from a fund managers' 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.

Currently, there are 36 closed-end mutual funds listed on the Dhaka Stock Exchange while the number of open-end mutual funds will be 89, including this fund.

babulfexpress@gnail.com