Listed mutual funds (MFs) continued to dominate the gainers chart on Dhaka Stock Exchange (DSE) Tuesday as nine of the ten best performing issues were mutual funds despite the market ended lower.
The mutual fund sector also registered the highest gain of 2.70 per cent as prices of 30 mutual funds closed higher, out of 37.
"We could have generated more gain if the market remained stable," said an asset manager at a leading private sector asset management company, requesting anonymity.
He noted that the mutual funds have been continuing to gain as prices of units of many funds dipped historical lows in comparison to their net asset values in recent months.
According to City Bank Capital Resources, the entire mutual fund sector is currently trading at a 35.4 per cent discount from its net asset value (NAV) at market price.
The NAV of a mutual fund shows its ability to give dividends to unit holders. When the NAV of a fund rises beyond its face value, it is more able to give dividends.
"The prices of most of the mutual funds' unit are also being traded below their face value, which is attractive for investors".
Among the 37 mutual funds, 27 mutual funds were traded below their face value on the DSE trading floor as on Tuesday.
ICB AMCL First Agrani Bank Mutual Fund was the day's best performer, posting a gain of 10 per cent to close at Tk 8.80.
It was followed by ICB AMCL Third NRB Mutual Fund, gaining 9.68 per cent to close at Tk 6.80 each.
Phoenix Finance First Mutual Fund followed next, advancing 8.57 per cent to close at Tk 7.60.
ICB Employees Provident Mutual Fund-1 clinched the fourth spot, gaining 7.25 per cent to end at Tk 7.40.
First Bangladesh Fixed Income Fund emerged fifth, gaining 5.36 per cent to close at Tk 5.90 each.
Vanguard AML BD Finance Mutual Fund One surged 5.36 per cent to close at Tk 10.
First Janata Bank Mutual Fund posted a 4.84 per cent positive return, as it's per unit closed at Tk 6.50.
PHP First Mutual Fund and Exim Bank First Mutual Fund also featured in the top gainers' chart, gaining 4.76 per cent and 4.35 per cent respectively.
A mutual fund is a professionally managed collective investment scheme that pools money from many investors to invest in stocks, bonds and short-term money market instruments.
The top assent manager in terms of asset under management is Race Asset Management Company having 49.70 per cent market share in the industry, followed by LR Global Bangladesh Asset Management Company 16.70 per cent, ICB AMCL 12.1 per cent and AIMS of Bangladesh 7.0 per cent, according to the City Bank Capital Resources.
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