Midland Bank's two open-ended MFs open for subscription

Midland Bank has launched two open-ended mutual funds-Midland Bank Growth Fund and Midland Bank Balanced Fund-both of which are now open for public subscription, according to a press release.

The funds will be managed by Midland Bank Asset Management Company Limited. Shandhani Life Insurance Company Limited has been appointed as the trustee for both funds, while the Commercial Bank of Ceylon will act as the custodian.

Each fund has an initial target size of Tk 250 million, with Midland Bank investing 10 per cent of the initial fund as sponsor contribution. The remaining portion will be raised through public subscription.

There will be no entry or exit load, allowing investors to purchase and redeem units at the net asset value (NAV). Subscriptions can be made digitally through the investor portal of Midland Bank Asset Management Company Limited as well as at the MDBAMC office counter.

The Midland Bank Growth Fund aims to generate superior risk-adjusted returns through a higher allocation to growth-oriented stocks. The Midland Bank Balanced Fund aims to generate stable income by maintaining a balanced approach allocation between risk and return. Both mutual funds will be managed by investment professionals, including CFA charter holders with considerable fund management expertise.

The growth fund will distribute at least 30 per cent of its realised annual profit, while the balanced fund will distribute at least 50 per cent of its realised annual profit. The initial subscription period for both funds will close on April 12.