Mutual Funds:

Mutual fund pools money together from thousands of small investors and then its manager buys stocks, bonds or other securities with it. When you contribute money to a fund, you get a stake in all its investments. That's a big deal: Since most funds allow you to begin investing with as little as a couple thousand dollars, you can attain a diversified portfolio for much less than you could buy individual stocks and bonds. Plus, you don't have to worry about keeping track of dozens of holdings - that's the fund manager's job. The price for a share of a open-end fund is determined by the net asset value, or NAV, which is the total value of the securities the fund owns divided by the number of shares outstanding. If a mutual fund has a portfolio of stocks and bonds worth $10 million and there are a million shares, the NAV would be $10. A fund's NAV changes every day, depending on the price fluctuations of the fund's holdings. The NAV is the price at which you can buy and sell shares, as long as you don't have to pay a sales commission, or "load." You have to pay loads when you buy from a broker, financial planner, insurance agent or other adviser.

Advantages and Disadvantages of Mutual funds:

Mutual funds have advantages compared to direct investing in individual securities. These include:

Increased diversification Daily liquidity Professional investment management Ability to participate in investments that may be available only to larger investors Service and convenience Government oversight Ease of comparison

Mutual funds have disadvantages as well, which include:

Fees Less control over timing of recognition of gains Less predictable income No opportunity to customize

History of Mutual Funds

The first mutual funds were established in Europe. One researcher credits a Dutch merchant with creating the first mutual fund in 1774The first mutual fund outside the Netherlands was the Foreign & Colonial Government Trust, which was established in London in 1868. It is now the Foreign & Colonial Investment Trust and trades on the London stock exchange. Mutual funds were introduced into the United States in the 1890s.They became popular during the 1920s. These early funds were generally of the closed-end type with a fixed number of shares which often traded at prices above the value of the portfolio. The first open-end mutual fund with redeemable shares was established on March 21, 1924. This fund, the Massachusetts Investors Trust, is now part of the MFS family of funds. However, closedend funds remained more popular than open-end funds throughout the 1920s. By 1929, open-end funds accounted for only 5% of the industry's $27 billion in total assets.[9] After the stock market crash of 1929, Congress passed a series of acts regulating the securities markets in general and mutual funds in particular. The Securities Act of 1933 requires that all investments sold to the public, including mutual funds, be registered with the Securities and Exchange Commission and that they provide prospective investors with a prospectus that discloses essential facts about the investment. The Securities and Exchange Act of 1934 requires that issuers of securities, including mutual funds, report regularly to their investors; this act also created the Securities and Exchange Commission, which is the principal regulator of mutual funds. The Revenue Act of 1936 established guidelines for the taxation of mutual funds, while the Investment Company Act of 1940 governs their structure. When confidence in the stock market returned in the 1950s, the mutual fund industry began to grow again. By 1970, there were approximately 360 funds with $48 billion in assets.[10] The introduction of money market funds in the high interest rate environment of the late 1970s boosted industry growth dramatically. The first retail index fund, First Index Investment Trust, was formed in 1976 by The Vanguard Group, headed by John Bogle; it is now called the Vanguard 500 Index Fund and is one of the world's largest mutual funds, with more than $100 billion in assets as of January 31, 2011.

Why should you invest in Mutual Funds?

If you are a less risk taker and a long-term investor you can consider investing on Mutual funds. 1) Reduce your risks: Mutual Funds diversify your portfolio by investing in various securities & minimize the risk because Mutual funds are not like volatile as other secondary market shares. 2) Maximize the security and expectation on investment opportunities: - The fund managers with the strong research take explore new investment options make available opportunities for your investments to flourish. Investments will be secured with a less risk and moderate returns. 3) Liquidity: Quick access to your money and Mutual Funds can be bought and sold on any business day. 4) Affordability: - Of course, you dont need a lots of money to invest in mutual fund as the minimum investment in mutual fund starts from 1,000 taka . A Mutual Fund because of its large corpus allows even a small investor to take the benefit of its investment strategy.

5) Low Costs - Mutual Funds are a relatively less expensive way to invest compared to directly investing in the capital markets because the benefits of scale in brokerage, custodial and other fees translate into lower costs for investors. 6) Tax Benefits - The tax benefits that Mutual Funds investors enjoy at the moment is the treatment of long-term capital gains. Double taxation can be avoided by investing in Mutual funds for long-term. 7) Transparency - The investor gets regular information on the value of his investment in addition to disclosure on the specific investments made by the fund, the proportion invested in each class of assets and the fund manager's investment strategy and outlook. If I ask you that I would give you 20% return on investing mutual funds over the year, would you do it? You bet, everyone would do it because it is risk free, lucrative return and no market can bid this kind of return or dividend. Let me show you how much dividend you would earn from mutual funds investment. These data are collected from CSE market: Let's not only talking but we also want to show you the trends and allocation of dividends over years so you can do some work on this. The following table gives you an idea what I am talking about. Investing in few mutual funds without any risk, you can make over 50% earning in some stocks or mutual funds per year. Let's do some math here, if you invest $100 in mutual fund for 5 years which provides at least 50% dividend return. In 1st year, it will grow to 150, and over 2 nd year it will grow to $225 and end of 5 years it will accumulate to $759.375 with the return of 50%. I am not sure where you can make this kind of return without stressing any risk.

Investment in share capital is becoming more risky business due to affecting of lots of factors but mutual fund is less risky than stock. So, all the big corporations and financial institutions allow public to invest the money in their mutual funds. If we talk about the main mutual funds in Bangladesh, first of all, we have to understand its economy. Latest news relating to economy of Bangladesh is that it has stopped to depend on foreign loan and it is developing the its own financial organizations who collect fund from own peoples of Bangladesh and this fund is utilized for developing of Bangladesh. If you are the citizen of Bangladesh, you should invest your countries' own mutual funds and this fund will be helpful for developing your country instead of going loan. I think, if a country demands loan from other country, it means that country is becoming beggar for getting loan. So, for pride of country, we should never demand loan from any other country. Indian may also invest in this mutual fund because Bangladesh was the part of India and still we behave it as our brother. We are interested to make Strong of our brother's economy.

Types of Mutual Funds

Now, I am writing List of Mutual Funds in Bangladesh. Following is the list of Bangladeshs largest mutual fund providers. They offer to public to invest in these mutual funds. In these providers include the companies of banking sector, insurance sector and finance sectors. There are 4 Top companies who are the providers of mutual funds. Ist EBL First Mutual Fund EBL First Mutual Fund is a closed-end fund incorporated in Bangladesh. The fund's objective is to provide high dividend income. The Fund invests in capital market and money market securities. The Fund is listed on the Dhaka Stock Exchange.

2nd Eighth ICB Mutual Fund This mutual fund has been made by investment corporation of Bangladesh. It is a closed-end fund incorporated in Bangladesh. The Fund's objective is to provide dividend income. The Fund invests in the Bangladeshi capital market. 3rd ICB AMCL Islamic Mutual Fund ICB AMCL Islamic Mutual Fund is a closed-end fund incorporated in Bangladesh. The fund's objective is to provide high dividend income. The Fund invests in Shariah compliant securities/instruments. The Fund is listed on the Dhaka Stock Exchange. 4rd Seventh ICB Mutual Fund Like other ICB financial product, it is also investment corporation's financial product.

List of Mutual Fund in Bangladesh:

IAIMF ICB AMCL ISLAMIC MUTUAL FUND Aug 15 2007 Aug 15 2007 IAMC1 ICB AMCL FIRST MUTUAL FUND Aug 15 2007 Aug 15 2007 ICB1 1ST ICB MUTUAL FUND Aug 15 2007 Aug 15 2007 ICB2 2ND ICB MUTUAL FUND Aug 15 2007 Aug 15 2007 ICB3 3RD ICB MUTUAL FUND Aug 15 2007 Aug 23 2007 ICB4 4TH ICB MUTUAL FUND Aug 15 2007 Aug 23 2007 ICB5 5TH ICB MUTUAL FUND Aug 15 2007 Aug 23 2007 ICB6 6TH ICB MUTUAL FUND Aug 15 2007 Aug 23 2007 ICB7 7TH ICB MUTUAL FUND Aug 15 2007 Aug 23 2007 ICB8 8TH ICB MUTUAL FUND Aug 15 2007 Aug 23 2007 INRB1 ICB AMCL FIRST NRB MUTUAL FUND Aug 15 2007 Aug 15 2007 .

No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

NAME 1st Bangladesh Shilpa Rin Sangstha MF (STBSRS) AB Bank 1st Mutual Fund (ABB1STMF) AIBL First Islamic Mutual Fund (AIBL1STI) AIMS First Guaranteed Mutual Fund (AIMS1ST) DBH First Mutual Fund (DBH1ST) EBL First Mutual Fund (EBL1STMF) EBL NRB Mutual Fund (EBLNRBMF) Eighth Icb Mutual Fund (8THICB) Fifth ICB Mutual Fund (5THICB) First Bangladesh Fixed Income Fund (FBANGFI) First Janata Bank Mutual Fund (1JANATA) Fourth ICB Mutual Fund (4THICB) Grameen Mutual Fund Scheme 1 (GRAMEEN1) Grameen Mutual Fund Scheme 2 (GRAMEEN2) Green Delta Mutual Fund (GREENDEL) ) ICB AMCL First NRB Mutual Fund (ICBFNRB) ICB AMCL Islamic Mutual Fund (ICBIS) ICB AMCL Second Nrb Mutual Fund (ICBAMCL) ICB AMCL Third NRB Mutual Fund (ICBTNRB) IFIC Bank First Mutual Fund (IFIC1ST) IFIL Islamic Mutual Fund 1 (IFILIM1 MBL 1st Mutual Fund (MBL1STMF) ) (3RDICB) Phoenix Finance 1st Mutual Fund (PF1STMF) PHP First Mutual Fund (PHPMF1) Popular Life First Mutual Fund (POPULAR1) Prime Bank First ICB AMCL Mutual Fund (PRIME1IC) Prime Finance First Mutual Fund (PRFINFM) Reliance One Mutual Fund (RELIANC1)

TYPE Closed-End Fund Closed-End Fund Closed-End Fund Closed-End Fund Closed-End Fund Closed-End Fund Closed-End Fund Closed-End Fund Closed-End Fund Open-End Fund Closed-End Fund Closed-End Fund Closed-End Fund Closed-End Fund Closed-End Fund Open-End Fund Closed-End Fund Open-End Fund Open-End Fund Closed-End Fund Closed-End Fund Closed-End Fund Closed-End Fund Closed-End Fund Closed-End Fund Closed-End Fund Closed-End Fund Closed-End Fund

OBJECTIVE Flexible Portfolio Balanced Government/C orporate Government/C orporate Region FundGeo FocusedAsset

Government/C orporate Government/C orporate

Government/C orporate Income Equity Region FundGeo FocusedGlobal Debt Government/C orporate Sector FundAlloc/Islamic Government/C orporate Government/C orporate

Government/C orporate