Chapter !111111!

Performance Evaluation of ICB Mutual Funds
Chapter: 1
Introduction
Part
International University of Business Agriculture And Technology
Page 1

1.1 Introduction:
Bangladesh is one of the least developed countries in the world with minimum natural and
financial resources. The development of Bangladesh is being hindered due to lack of insufficient
capital. To accelerate the phase of industrialization through the development of capital market
and broadening the base of investment, The Investment Corporation of Bangladesh (ICB) was
established on 1 October 1976, under The Investment Corporation of Bangladesh Ordinance,
1976 (No. XL of 1976). The establishment of ICB was a major step in a series of measures
undertaken by the Government to accelerate the pace of industrialization and to develop a wellorganized and vibrant Capital Market particularly securities market in Bangladesh. ICB caters to
the need of institutional support to meet the equity gap of the companies. In view of the national
policy of accelerating the rate of savings and investment to foster self-reliant economy, ICB
assumes an indispensable and pivotal role. Through the enactment of the Investment Corporation
of Bangladesh(Amendment) Act, 2000 (no. 24 of 2000), reforms in operational strategies and
business policies have been implemented by establishing and operating subsidiary companies
with ICB as the holding company.
Page 2

1.2 Origin of the Report:
Internship means receiving practical experience through attending particular work physically.
Practically Internship means a way through which an internee, can gather experience about the
related subjects and be able to apply his theoretical experience in the field of real life action. To
match theoretical knowledge with that of practical field, internship plays a vital role for the
students of business education. Practical training is necessary to achieve complete knowledge
about something. Internship program is actually a form of practical training. With this program
the students get experiences and know that how much theoretical knowledge is deviated from the
real facts. To give that test, each business students of Department of Collage of business
Administration, International University of business Agriculture and technology has to carry out
an internship program. Thats why; I had been placed for internship program in Investment
Corporation of Bangladesh (ICB) for a period of two months.
As a student of BBA, major in, Finance and Banking internship is an academic requirement. For
doing internship every student is required to work in a selected institution to enhance ones
practical knowledge and experiences.
For my internship I was sent to the Investment Corporation of Bangladesh (ICB), under the
supervision of Zahir Rayhan Salim, Department of Business Administration, International
University of Business Agriculture and Technology (IUBAT)). My supervisor asked me to
prepare a report on Performance evaluation of ICB Mutual Funds. I am doing the
internship at ICB from 23.10.2014 to 28.12.2014.
Page 3

1.3 Background of the Study:
Though ICB play a vital role in Bangladesh economy by accelerating the phase of
industrialization through the development of capital market and broadening the base of
investment few people have the knowledge about the corporation with vague meaning.
I have been placed in the Investment Corporation of Bangladesh (ICB) for internship program
and there was the opportunity to see the overall functions of the organization during my two
month internship program. As student of Department of Finance and Banking I have theoretical
knowledge and ICB is giving me the opportunity to gather knowledge in practical field.
I have got the opportunity to work in the Investment Corporation Bangladesh, as a part of the
internship program. It was time for me to get real life experience. Having understanding this I
decided to do my internship in renowned finance Corporation. Now a days everybody wants to
do there internship in private bank as they are performing well. As I came to know that ICB is an
equity financer for the corporate investors and only disburse long term finance, and play a vital
role in capital market, I decide to do my internship in ICB.
Page 4

1.4 Objectives of the Study:
General objectives:
The main objective of this report is to assess the performanceEvaluation of ICB Mutual Funds,
the company named Investment Corporation of Bangladesh (ICB).
Specific objectives:
Specific objectives of this report are as follows:
1) To fulfill the requirement of BBA program as necessitated by Department of finance and
banking, International university of Business Agriculture and Technology (IUBAT).
2) To analyze the performance of ICB, its image and its role in the capital market of
Bangladesh.
3) To learn the practical aspect of the Investment Corporation of Bangladesh.
4) To get aware about the working environment in advance that will help in adjusting a
student with the future working life.
5) To know the product of ICB at the securities market in Bangladesh.
6) To investigate the different functions performed by different department of ICB.
7) To investigate their different consumer perception & knowledge.
8) To explore the problems of ICB.
9) To give suggestion to overcome the problem.
10) To suggest how can they improve their services.
Page 5

1.5 Methodology of the Study:
Methodology can be termed as underlying principles and rules of organization that work at the
background of the study. It clarifies the problem involving the research in an ordered and
systematic way. For this study data and other information can be collected by the following
ways:
Sources and Methods of Collecting Primary data:
Personal Interview: This is the most effective way to collect primary data. Through this
process the Trainee can confront a number of officials of ICB and shareholders. I interviewed
them by asking financial operation of ICB.
Briefing Session: In case of corporate organization, this method is very useful. During
internship period we visited different departments of ICB and took part briefing session .The
head of departments gave briefs the trainees which were very much useful for us and we
gathered some valuable information from their briefing.
By Observation: This process is very useful for gathering primary data. This process is
very costly, time consuming. Through this process limited but accurate data can be collected.
Sources and Methods of Collecting Secondary data
The secondary data had been collected with several relevant articles of the ICB.
These are given below:
ICB Annual Report (2012-2013).
Annual Report of Mutual Fund (2012-2013).
Annual Report of Unit Fund (2012-2013).
Others materials of the Investment Corporation.
Other sources
Page 6

1.6 Scope of the Study:
The scope of the report was basically the operations and practices of Investment Corporation of
Bangladesh, in which I had undertaken the internship program. The scope of the study was in
the organization, Investment Corporation of Bangladesh (ICB). Since I was placed in the ICB
and I worked in the head office, I gave my concentration on various important operations (ICB
AMCL, CML, and STCL). The study was confined only on the Head office and gave more
concentration on it. The data comparison was based on published information and
an
additional survey was performed to get in-depth information, as it was the part of the objective
of the report. The empirical part included only published information and current practices of
Investment Corporation of Bangladesh.
1.7 Limitation of the Study:

In preparing this report I have faced a little limitation. During this Internship Report I have
worked all the departments of ICB one after another. So in this corporation part I mainly
connection of the functions of all departments. ICB is a large corporation, but study time is too
short on an organization like ICB and this was the main limitations of my Internship Program.
Other constraints I faced during the course of my study are as follows:
Relevant information is not available in English.
Collecting information is a long process because of their paper base activity.
Relevant papers and documents were not available sufficiently.
At the time of face to face discussion with officials, there were no sufficient chairs and
tables.
Inadequate information.
Our capital market is not so strong and mature so the various financial analyses cannot be
applied to judge the performance of the subsidiaries of ICB.
Page 7
Chapter: 2
Organization
Part
Page 8

2.1 Historical Background of ICB:
The striking contradiction in most of the underdeveloped world including Bangladesh is the large
availability of local capital on the one hand and a relatively small use of such capital in industry
on the other hand. Most of the privately owned capital is either invested in non- productive
sector or has gone to safe haven in foreign countries. Large amounts of capital have also been
found in the pension funds and in the reserve of insurance companies. These funds if channeled
into industry, the problem of financing industrialization would be solved to a great extent.
Investors want to invest their surplus in investments, which offer safety, liquidity as well as
attractive rates of return. To meet the needs of investors of all types, a wide range and adequate
number of securities should be made available in the capital market. Institution and institutional
supports are absolutely necessary for such capital market activity. ICB, the national investment
house, is the lone organization to perform the activities by creating demand for securities and on
the other hand to ensure the supply of securities in Bangladesh capital markets. Investment
Corporation of Bangladesh was established on October 1, 1976, under the ICB ordinance No. XL
of 1976 to fulfill the following objectives:
To encourage and broaden the base of investment.
To develop the capital market.
To mobilize savings.
Through the recent enactment of The Investment Corporation of Bangladesh (Amendment) Act,
2000 (XXIV of 2000), scope of ICBs activities through the formation of subsidiaries, have
been expanded. The companies were incorporated under Companies Act, 1994 with the Registrar
of Joint Stock Companies on December 5, 2000. Certificate of Commencement were also
obtained on the same day.
Preliminary registrations of the companies with the Securities and Exchange Commission (SEC)
were obtained on December 19, 2000 under certain terms and conditions. Subsequently,
Government of Bangladesh was approached to provide Tk. 5.25 corer soft loan to ICB to enable
it as the holding company to inject equities to the subsidiary companies. Anarrangement in this
behalf was signed between Government of Bangladesh & ICB on June14, 2001.
Page 9

2.2 ICB at a Glance:
Name:
Investment Corporation of Bangladesh (ICB)
Date of Incorporation:
October 1, 1976.
Nature:
Investment Banking Company
Related Law:
Investment Corporation of Bangladesh Ordinance1976 (no. XL

1976)
Authorized capital:
Tk. 1 billion
Paid Up Capital:
Tk. 0.50 billion.
Face value of Share:
Tk. 100.
Number of Shares:
10 million
Status:
Corporation (Listed on the Stock Exchange).
Subsidiaries:
ICB Asset Management Company Ltd. (AMCL)

ICB Capital Management Company Ltd. (CML)
ICB Security Trading Company Ltd. (STCL)
Page 10

2.3 Business Policy of the ICB:
The Corporation has adopted a realistic business policy framework within which its operation is
conducted. The corporation in its operating acts on commercial considerations with regard to the
interest of industry and commerce, investment climate, capital market depositors, investors and
to the public interest generally.
The operational policies of the Corporation are as follows:
1) To act on commercial consideration with due regard to the interest of industry,
commerce, depositors, investors and to the public in general.
2) To provide financial assistance to projects subjects to their economic and commercial
viability.
3) To arrange equity and loans singly or through consortium of financial institutions
including banks.
4) Equity Support to projects and there by spreads the risks of understanding.
5) To develop and encourage entrepreneurs.
6) To diversify investments.
7) To inspire small and medium savers for investment in securities.
8) To create employment opportunities.
9) To encourage more investment in Agro-based and Information and Communication
Technology (ICT) sectors.
2.4 Objectives of the ICB:
The main objectives of ICB are as follows:

1. To provide for matters ancillary thereto.
2.
To encourage and broaden the base of investments.
3.
To develop the capital market.
4.
To mobilize savings.
5.
To promote and establish subsidiary companies for business development.
Page 11

2.5 Vision of ICB:
ICB will be the leading responsible and environment friendly financial institution
operating in such a way that our fellow competitors watch, acknowledge and admire
emulates us as a role model of success.
2.6 Mission of ICB:
ordinance for fostering rapid growth of Bangladesh economy.

Being a financial architect, strive to established benchmark
of values, attitudes, behavior and commitments with earnest endeavor in generating
optimum profits and growth for shareholders by efficient use of resources.
Being an innovative solution provider, put emphasis on
formulating total solution to foster mobilization of all domestic & NBR savings
into potential investment.
a performance leader, intended to lead by example,
operate in the interest of the customer & committed to do everything in their power
to for their customers everlasting trust.
Page 12

2.7 Head Office & Branches:
Office of the Corporation
Head Office
Local Office
BSB Building (12-15th Floors)
Kashfia Plaza (1st floor)
8, DIT Avenue, Dhaka-1000.
35/C, Nayapaltan,
Post Box No. 2058
VIP Road Dhaka-1000
Phone : 9563455
Phone : (02) 9343288 , 8360815
E-mail : icb@agni.com
E-mail : icblocal@intechworld.net
Branch Office
Chittagong
Delwar Bhaban (3rd floor)
104, Agrabad Commercial Area
Chittagong.
Phone : (031) 714851, 727064
E-mail : icbctg@spetnet.com
Rajshahi
Dr. Gaffar Plaza (2nd Floor)
Main Road, Shaheb Bazar
Rajshahi.
Phone:(0721)775402,774661
E-mail:icbrajbr@bttb.net.bd
Sylhet
Ananda Tower (2nd floor)
Jail Road
Sylhet.
Phone : (0821) 714703, 2830458
E-mail : icbsyl@sol_bd.com
Bogra
Afsar Ali Complex(4th floor)
Borogola, Raja Bazar Road,
Bogra.
Phone : (051) 66940, 66860
E-mail : icbbogra@bttb.net.bd
Khulna
Barisal
Dr. Gaffar Plaza (2nd Floor)
Barisal Plaza (2nd floor)
Shaheb BazarRajshahi.
Phone :(0721)775402,774661
E-mail :icbrajbr@bttb.net.bd:;::;;
Hemayet Uddin Road,Barisal.

Phone : (0431) 64404
E-mail : icbbsl@ccnbsl.net
Page 13

2.8Number of Employees of ICB:
1st class
2nd class
3rd class
4th class
Total
Male
260
38
89
66
453
Female
48
09
15
05
77
Total
308
47
104
71
530
Present
Personnel
260
300
250
200
48
150
100
89
38
50
15
0
1st Class
2nd class
3ed class
Male
Female
Figure1: Number of Employees of ICB.
Page 14

2.9 Board of Director of ICB:
The board is comprised of 11 directors. The board of directors of ICB as on 30th June 2011 is as
follows:
Dr. S.M. Mahfuzur Rahman
Md. Fayekuzzaman
Chairman
Managing Director (MD)
Professor
Department of International Business
University of Dhaka
Dipika Bhattacharjee
Secretary
Deputy General Manager
Page 15
Directors
Kazi Safiqul Azam
Gokul Chandra Das
Joint Secretary.Budget-1
Joint Secretary (Administration)
Finance Division, Ministry Of Finance
Bank & Financial Institution Division

Ministry Of Finance
S.M. Moniruzzaman
Executive Director
Bangladesh Bank
Dr. Md. Zillur Rahman

Managing Director,
Bangladesh Development Bank Ltd.
Pradip Kumar Dutta

CEO/MD
Sonali Bank Ltd.
Syed Abdul Hamid

Managing Director& CEO
Agroni Bank
S.M. Aminur Rahman
Md. Rezaul karim
Managing Director& CEO
Managing Director
Janata Bank Ltd.
Sadharan Bima Corporation
Page 16

2.10 Corporate Social Responsibility:
ICB feels proud for its strong participation in the various CSR activities. In the financial year
2012-13, ICB contributed TK. 8.638 million to the following activities as:
Sponsored the 50th anniversary celebration of Bangladesh Agricultural University,
Mymensingh.
Aided the faculty of business studies of Dhaka University for ICB- Dhaka University
Merit Awards and lecture series.
Contributed in Spectrum Engineering Consortium Limited under ICB- IT Support
(IISP) Program.
Sponsored the Bangladesh Olympic Association 2013 for 8th Bangladesh Games.
Contributed to the victim of Rana Plaza Tragedy.
Provided an important support to the institute of Bankers, Bangladesh (IBB) for
purchasing floor space under the CSR program.
Supported financially to the Gopalganj Zilla Samity and also to the Bangabandhu
Parishad of ICB.
Contributed to the computer Science and Engineering Dept. DU, Shanskrete dept.
DU.
Page 17

2.11 Management of ICB:
The Head office of the corporation as per the requirement of the ordinance of ICB is located
at Dhaka. The general direction and superintendence of the corporation created in a board of
directors, which consists of persons including the chairman and managing director of ICB
The board of directors consists of the following directors:
a) The Chairman to be appointed by the government.
b) The directors to be appointed by the government from among persons serving under the
government.
c) One director to be nominated by the Bangladesh Bank The managing directors,
Bangladesh Shilpa Bank, Ex-office.
d) The managing directors, Bangladesh Shilpa Rin Sangstha, Ex-office.
e) Four other directors to be elected by the shareholders other than the government, BB,
BSB and BSRS.
f) The managing director of ICB to be appointed by the government.
Page 18

2.12 Organizational Hierarchy of ICB:
The new organizational Hierarchy of ICB is shown below:
Figu
re 2:
Orga
nizat
ional
Hier
arch
y of
ICB.
Page 19

2.13 Products of ICB:
(a) Private Placements
ICB is authorized to act as an agent of the issuers and investors for private placements of
Securities. Under this arrangement, ICB places securities to individuals/institutions on behalf of
the issuer for which it charges fees. ICB acquires shares/ securities for its own portfolio.
(b) Underwriting
In order to raise long-term equity from the primary market, the government bodies, enterprises,
corporations or companies may seek intermediary assistance from ICB in the form of
underwriting. Because of its long and proven experience, reputation, asset back up and
established network of regional offices, ICB is an excellence position to attract the potential
investors to the proposed issue of shares, debentures and other securities for successful floatation
of IPO and placement.
(c) Custodian and Banker to the Issues
To act as the custodian to the public issue of Open-end & Closed-ended Mutual Funds, ICB
provides professional services. It also acts as the Banker to the issues and provides similar
services through the network of its branches.
(d) Mergers and Acquisitions
Companies willing to expand their business through mergers or acquisitions or to divest projects
that no longer fit into present scale of operation contact the Corporation. ICB provides
professional services & advice in respect of shaping up the cost and financial structures to ensure
best possible operational results. Besides, in case of divestment, the Corporation, through
network and established business relationship, bring buyers and sellers together, help them
negotiate final agreement and advice on the emerging corporate structure.
Page 20

(e) Corporate Financial Advice
Companies and Government enterprises intending to go public often seek professional &
financial advice on corporate restructuring & reengineering. ICB through its expertise provide
such services.
(f) Bank Guarantee Scheme
ICB introduced Bank Guarantee scheme in 2002-03. ICB provides
(i) Bid Bond for enabling the business people to participate in any tender o bidding;
(ii) Performance Bond for helping the business community to continue their business smoothly
by fulfilling their obligations promised by them to their clients;
(iii) Customs Guarantee for solving different disagreements between the customs authority and
the business classes at the initial stage. The maximum limit guarantee in Tk. 20 million and
would be issued against at least 20 per cent cash and 80 percent easily cashable securities or
against 100 per cent cash margin. Re-guarantee from other financial institution is required for
guarantee against the amount exceeding Tk. 20 million.
(g) Consumer credit Scheme
As part of business diversification program ICB has introduced Consumer Credit Scheme in
2003-04 looking at the need of various household commodities of different professionals of
govt., semi-govt., autonomous bodies and some established private sector organization. Under
this scheme one can enjoy minimum of Tk. 0.10 million but maximum of Tk. 0.50 million credit
facilities. The rate of interest on the loan is reasonable and competitive.
(h) Lease Financing
ICB provides lease finance mainly for machinery, equipment and transport. ICB is in a position
to provide professional advice and financial assistance to the intending clients. The period of
lease, rental, and charges and other terms and conditions are determined on the basis of type of
assets and the extent of assistance required by the applicants. Since introduction of this scheme
in 1999 good responses have been received from the intending lessees.
Page 21

(i) Trustee to the debenture and Securities assets
ICB is acting as trustee to the debenture issue and asset-backed securitized bonds. ICB acted as
trustee to the issue of 17 companies of which 7 companies has been redeemed successfully.
(j) Investors Scheme
The Investors' Scheme was introduced in June 1977. Over the years this scheme has grown
tremendously. ICB, at its discretion, may grant up to two times loan against the assets of an
account subject to a maximum limit of Tk. 0.3 million. An account holder may use the combined
balance of his/her equities and loan to buy shares/securities. To help the investors to develop
diversified and balanced portfolio to minimize risk and earn a reasonable return.
(k) ICB Unit Fund
It is an open-end mutual fund scheme launched in April 1981, through which the small and
medium savers get opportunities to invest their savings in a balanced and relatively low risk
portfolio. ICB has so far declared attractive dividends on units every year ranging from Tk. 11.50
to Tk. 25.00 per unit. Investment in units enjoys tax benefits, amount being applicable as per
law. However, under the ICBs restructuring program new unit certificates are being sold by
ICBs subsidiary company, the ICB Asset Management Company Ltd.
(l) ICB Mutual Fund
ICB has so far floated eight closed end mutual funds. The First ICB Mutual fund was floated
on 25 April 1980, while the Eighth ICB Mutual Fund was floated on 23 July 1996. The
aggregate size of these funds is Tk. 175 million. Dividends declared on the funds were very
attractive ranging from 15.00 to 210.00 per certificate for 2003- 04. One can invest in such funds
through the stock exchanges with which these funds are listed. Through corporate restructuring,
new mutual funds are being floated through ICB Asset Management Company Ltd. a
subsidiary of ICB.
Page 22

(m) Advance against ICB Unit Certificates Scheme
This is ICB's another newly introduced scheme, especially designed for the ICB unit holders to
meet their emergency fund requirement for investment in securities. One can borrow maximum
of Tk. 85 per unit by depositing his/her unit certificates under lien arrangement from any of the
ICB offices where from such unit certificates were purchased. The exiting rate of interest on the
loan is very reasonable and competitive.
(n) Advance against Mutual Fund certificates Scheme
Advance against ICB Mutual Fund certificates Scheme was introduced in 2003, designed for
theICB Mutual Fund Certificate-holders to meet their emergency fund requirement. One can
borrow maximum of 50% value of last one year's weighted average market price of certificates at
the time of borrowing by depositing his/her certificates under lien arrangement from any of the
ICB offices. The rate of interest on the loan is reasonable and also competitive.
(0) Investment Portfolio of ICB
Being the largest institutional investor ICB contributes significantly to the development of the
country's capital market through active portfolio management, which is one of the important
functions of ICB. As on 30 June 2008, the market of securities of ICBs investment portfolio was
Tk.3943.5 million against the not investment value of Tk.421.12
Page 23

(p) Bangladesh Fund
The capital market has fallen in great crisis at the end of 2010 and gone to more instable position
by losing the trust of investors and shortage of liquidity to the money market. To make the
capital market stable, the Government of Bangladesh has taken some steps and directed ICB to
take the initiative to develop the base of capital market. The Board of Directors of ICB approved
to Sponsor an open end Mutual Fund namely Bangladesh Fund, the initial size of the fund is
Tk. 50 billion divided into 0.50 billion units at par value of Tk. 100.00 (one hundred) each and
face value of the fund will be Tk. 100.00 (one hundred) per unit.
The main objective of the fund is to stabilize the capital market, long-term development of
capital market and increase the supply of liquidity to the money market.
Page 24

2.14 Organizational Analysis:
The financial results and some key financial ratios of ICB pertaining to profitability, liqudity and
solvency are given in the following table:
Table- Statement of financial results & some key financial ratios
Financial Results
2012-13
2011-12
Increase/
Decrease(%)
Total Income(TK. in million)
8487.5
6683.5
26.99
Total Expenses(TK. in million)
4025.9
2196.7
83.28
Profit before provision(TK. in
4161.6
4486.8
(0.56)
520.2
633.9
(17.63)
3941.4
3852.9
2.30
million)
Provision made(TK. in million)
Net Profit(TK. in million)
Net Profit to Total Income(%)
464.4
576.8
Increase/
Decrease(%)
(19.49)
Return on Investment (%)
148.8
148.9
(0.07)
Return on Equity(%)
178.0
149.5
19.06
Earnings Per Share(Tk.)
1167.8
1142.3
2.23
Book value per share (Tk.)
6587.8
7668.3
(14.09)
25.1
13.3
88.72
Dividend Payout Ratio(%)
428.1
437.7
(2.19)
Price earning ratio (times)
170.5
328.2
48.05
Current Ratio (Times)
1.31:1
1.51:1
19.63:100
0.39:100
Financial Ratios
Dividend yield (%)
Debt-Equity ratio
2012-13
2011-12
Page 25

2.14.1 Financial Result:
(a) Total Income
In 2012-2013 ICB earned a total income of Tk. 8487.5 million as compared to Tk.6683.5 million
earned in 2011-2012 showing an increased by 26.99 percent. The major heads of income ICB
were capital gain, dividend income, interest income and income from fees and commissions.
During 2012-2013 income from all heads including interest income went up compared to those
of the previous year. Of the total income of Tk. 8487.5 million the highest income being the
capital gain of Tk. 4947.0 million (58.29 percent) followed by interest income of Tk. 2549.3
million (30.04 percent) dividend and interest income on securities of Tk. 698.8 million (8.23
percent) fees and commissions of Tk. 215.0 million (2.53 percent) and Tk, 31.7 million (0.04
percent) as income from other sources. Due to efficient management of portfolio and favourable
market condition income from capital gain stood at Tk. 4947.0 million in 2012-2013, which was
33.65 percent higher than the capital gain of Tk. 3705.0 million of the previous year. despite stiff
competetion at the market by dnt of prudential cash and fund management, though the
corporation earned gross interest income of Tk. 2549.3 million lower than that of previous year.
Dividend income increased by 36.18 percent in the reporting year compared to previous year due
to satisfactory dividend performance by the companies selected in the portfolio.
(b) Total Expenditure

During 2012-13 The total expenditure of the corporation stodd at Tk.4546.1 million as compared
to Tk. 2830.5 million in 2011-12 showing an increasing of 60.61 percent over the previous year.
The major heads of expenditures were interest expanse of Tk. 3650.6 million which was Tk.
1846.9 million in previous year, showing a increase by 97.66 percent. other operating expanses
was Tk. 370540 million compared to Tk. 349.7 millionin 2011-12, registering an increase by
7.33 percent higher than that of the previous year, it was lower than the budgeted amount.
During the year provision of Tk. 14.6 million was provided against loans and advances.
Page 26

(c) Gross Profit
The gross profit before provision and tax was Tk. 4461.6 million in 2012-13 compared to Tk.
4486.8 million in 2011-12, showing an increase of 0.56 percent lower than last year.
(d) Net Income
During 2012-13, ICBs net profit after tax increased to Tk. 3941.4 million from Tk. 3852.9
million in 2011-2012 showing an increase of 2.30 percent.
(e) Dividend
The board of director of ICB recommended cash dividend at the rate of Tk. 25.00 peer share and
stock dividend at the rate of 25:100 for 2012-13. Cash dividend at the rate of Tk. 15.00 per share
and stock dividend at the rate of 35:100 were paid in the previous year.
(e) Appropriation of Profit
The board of director of ICB recommended appropriation of Tk. 4484.7 million which includes
net profit of Tk. 3941.4 million of 2012-13 and retained profit of Tk. 543.3 million of the
previous year.
Page 27

2.14.2 Net Profit to total Income ratio:
In business, Net income also referred to as the bottom line, net profit, or net earnings is an
entity's income minus expenses for an accounting period.It is computed as the residual of all
revenues and gains over all expenses and losses for the period, and has also been defined as the
net increase in stockholder's equity that results from a company's operations. In the context of the
presentation of financial statements, the IFRS Foundation defines net income as synonymous
with profit and loss.
Net Profit to total Income = Net profit / Total Income
= 3,941,435,945/8,487,500,000
= 46.44%
Total Income&Net Profit
1400
1200
3941.4
1000
3855.2
800
Taka
in million
3130.4
600
8487.5
400
6683.5
200
5276.2
0
2010-2011
2011-2012
Financial Year
2012-2013
Net Profit
Total Income
Figure 3: Chart of total income and net profit.
Page 28

2.14.3 Return on Equity (ROE):
Return on equity measures the rate of return on the ownership interest (shareholders' equity) of
the common stock owners. It measures a firm's efficiency at generating profits from every unit of
shareholders' equity (also known as net assets or assets minus liabilities). ROE shows how well a
company uses investment funds to generate earnings growth. ROEs between 15% and 20% are
generally considered good.
ROE = Net profit / Total Equity

= 3,941,435,945/22,140,827,829
=17.80%
Return on Equity (ROE)
Financial Year, %
2012-2013, 17.8
2010-2011,
13.36
2011-2012,
14.95
Figure 4: % of return on Equity.
Page 29

2.14.4 Earnings per share (EPS):
Earnings per share (EPS) are the amount of earnings per each outstanding share of a company's
stock.
EPS = Net Profit / No. of share outstanding
= 3,941,435,945/33,750,000
= 116.78 (Tk.)
Earnings per share (EPS)
2012-2013
, 116.78
2010-2011,
106.52
2011-2012,
114.16
Figure 5: Diagram of Earning per Share.

2.14.5 Priceearnings ratio:
In stock trading, the P/E ratio (price-to-earnings ratio) of a share is the ratio of the market price
of that share divided by the annual Earnings per Share (EPS).
P/E ratio = Market price per share / EPS
= 1,991.25 / 116.78
= 17.05 (times)
At the 28 june 2013 Market price was TK. 1991.25
Page 30

2.14.6 Book value per share:
Book Value per Shareis a recalculation of book value, wherein the total book value is divided by
the number of shares outstanding. This number is particularly useful in quickly calculating the
price to book ratio.
The book value per share formula is used to calculate the per share value of a company based on
its equity available to shareholders. The term "book value" is a company's assets minus its
liabilities and is sometimes referred to as stockholder's equity, owner's equity, shareholder's
equity, or simply equity.
Book value per share = Total Equity / NO. of outstanding shares
= 22,140,827,829/33,750,000
= 656.02 (Tk.)
2012-13, 656.02
2010-11,
939.4
2011-12,
1035.23
Figure 6: Book value per Share.
Page 31

2.14.7 Total Income and Net Profit after Tax:
900
8487.5
800
6683.5
700
600
5276.2
500
4370.1
300
3941.4
3130.4
2418.7
200
1011.9
100
3852.9
3642.1
400
1116.3
302.3
0
2007-8
2008-9
2009-10
Total Income
2010-11
2011-12
2012-13
Net Profit after Tax
Figure 7: Total profit & net Profit after Tax.
Page 32
Chapter: 3
Task done by
me at ICB
Page 33

3.1 Actual Task part:
In the period of my two months internship program, I have got a position and some duties in
Investment Corporation of Bangladesh. My observation and responsibilities are visiting all the
department of Investment Corporation of Bangladesh. From October 23, 2014 to December 28,
2014 I was working under the supervision of Uddipta Shahin Parag swho is the Senior Officer
of Manager of Human resource management department at Investment Corporation of
Bangladesh (Head Office).
On that time I learned many things about the various departments of Investment Corporation of
Bangladesh. Sometime I also worked as a data entry operator and many things.
3.2 Task Area:

In ICB my position is as an intern at all Department of ICB (Mainly the Human Resource
Management Department). The hierarchy is given below;
ICB
(GM Admin
Secretariat)
Trustee Div.
Legal Affairs Div.
Establishment Div.
Trustee Deptt.
Law Deptt.
Real Estate Deptt.
Custodian Deptt.
Documentation
deptt.
Procur & Common

Service Deptt.
Administration Div.
Human resource
Management
Department
My Position
Figure 8: Task Area

JBL
Page 34

3.3 Daily Activities:
Department: All the department of ICB (Mutual Funds of ICB).
Supervisor: Uddipta Shahin Parag
Working Time: 10.00 am to 5.30 pm
Holiday: Friday and Saturday with Govt. Holidays
WORK ALLOCATION
Work
Day
Day
Day
Day
Allocation
2
Placement at
ICB
Proposal writing
Theoretical
review
Organizational
Analysis
Methodology
andSurvey
Data analysis
Data tabulation
andProcessing
Preparing of
Final report
Preparing
Presentation
Final
Presentation
Page 35

3.4 Visited Department:
During my internship I have visited several department of ICB. Since I am an intern, so authority
gave me the permission to visit every department. My mission is to talk with them and collect the
information about the current condition of ICB and also the mutual funds of ICB. The following
departments listed are given below.
The Division wise various departments of ICB are given below:

Sl no. Division
1.
Administration
Departments
Departmental Heads
1.Human Resource Management
Mr. Nuruzzaman Khan
2. Discipline grievance & appeal
HRM Department
3. pension & welfare

Mrs. Ruksana Yasmin
Discipline, Grievance And Appeal
Dept. & Pension And Welfare
Department (Jointly)
2.
Establishment
1. Procurement & service
Mr. Helaluddin Ahmed
2. Real state.
Procurement & Common Service

Department
Mr. Md. Golam Mostofa
Real Estate Department
3.
Secretaries
1. Secretaries
Mr. Md. Al Amin Talukder
2. Public Relation.
Secretary`s Department
Mr. Md. Anwar Shamim
Public Relations Department
4.
Legal Affairs
1. Documentation
Mr. Md. Golam Rabbani
2. Law.
Documentation Department
Mr. Md. Noor Hossain Dhaly
Law Department
5.
Planning
1. Planning Research & Business Mr. Md. Shariqul Anam
Page 36

&Research
Development.
PRBD Department
2. Portfolio Management.
Mr. A.S.M. Haidaruzzaman
Portfolio Management Department
6.
Accounts
1.Cental Accounts
Mr. Mohammad Zaker Hossain
2. Loan Accounts.
Central Accounts Department

Mr. Younus Chowdhury
Loan Accounts Department
7.
Budget
1. Fund Management.
Mr. Abu Taher Mohammad
2. Budget & Risk Management.
Ahmedur Rahman
Fund Management Department
Mr. Mazeda Khatun
Budget And Risk Management
Department
8.
Hardware
& 1. Hardware & Communication
Communication
2. Data Administration & MIS
Mr. Md. Mofizur Rahman

Data Admin And Mis Department
& Hardware And Communication
Department (Jointly)
9.
Software
1. Programming.
Mr.Md Enaitur Rahman
2. System Analysis.
Mr. SK. Aslam Uddin
System Analysis Depertmen
10.
Internal
Control 1. Audit.
& Complains
2. Organization & methods.
Mr. Gazi Mustafa Haque

Audit Department
3. Inspection & Complains.

11.
Trusty
1. Trusty
Mr. Md. Abdul Hoque
2. Custodian.
Trustee Department
Mr. Md. Ahia Mondal
Custodian Department
12.
Credit
1. Appraisal.
Mrs. Parveen Sultana
2. Leasing.
Leasing Dept & Lien and General
Page 37
13.
Merchandise
3. Leanne & General Credit.
Credit Department(Jointly)
1. Investors.
Mr. Md. Shafiul Alam
2. Banker to the Issue.
Investors Department
Mr. Syed Mahamud Ahmed
Banker To The Issue Department
14.
Depository
1. Share.
Mr. Md. Serajul Huq
2. Securities Reconciliation.
Shares Department
Mrs. Noorjahan Begum
Securities Reconciliation
Department
15.
Implementation & 1. Implementation
Mr. Md. Nazrul Islam
Recovery
Implementation Department
2. Recovery.
Mr. Md. Rafiqul Islam

Recovery Department
16.
EEF
1. EEF Administration
Mr. Md. Rafiqul Islam
Administration
2. EEF Audit & Accounts
EEF AdminDepartment & EEF

Audit And Accounts Department
(Jointly)
17.
EEF Recovery & 1.

Legal Affairs
EEF
Implementation
Recovery
& Mr. Md. Rafique Ullah

EEF Leagl Affairs Department
2. EEF Legal Affairs.

18.
19.
EEF Appraisal
Branch Affairs
1. EEF Agro.
Mr. Provash Ranjon Roy
2. EEF Non-Agro.
EEF Non Agro Department
1. Branch Affairs-1
Mr. Mujibur Rahman Khan
2. Branch Affairs-2
Branch Affairs Department-1 & 2

(Jointly)
20.
Subsidiaries
1. Subsidiaries Affairs-1
Mrs. Shukla Das
Affairs
2. Subsidiaries Affairs-2
Subsidiary Affairs Department-1 &

2 (Jointly)
21.
Mutual Fund
1. Unit Fund
Mr. Trailakshya Roy
2. Mutual Fund
Unit Fund Department
Page 38

Mr .A. L. M. Shahnawaze
22.
ICB Securities Trading Company Ltd.
23.
ICB Asset Management Company Ltd.
24.
ICB Capital Management Company Ltd.
25.
ICB Asset Reconstruction.
3.5 Observe the function of the department:

I have no particular post in ICB. So my duty is to observe what are the functions of various
departments are and how they control everything. By the help of my supervisor, I am able to
know the function and fitted me in this situation and also collect information which will be
necessary to make my brilliant professional life. Those are given below.
Human Resource Management Department:
Appoints the manpower in the corporation.

Handling all personal matters including confirmation, posting, transfer, fixation leave etc.
Processing of all promotion and retirement.
Controlling of attendance.
Transfer, selects the salary, pension vacation, promotion, confirm the job, etc are the
personnel related works.
Processing the promotion, time scale, vacation related works.
Processing the retirement.
To maintain the national salary scale, select the salary, pension, increasing the annual
salary etc.
Arrange training for the employee both in home and abroad.
Maintaining liaison with ICB employeesunions.
Page 39

Discipline, grievance & appeal Department:
Make necessary rules, regulation & policies for efficient administration of the
corporation.
Taking action against the employee who gradually violets the rules & regulation of the
corporation.
Maintaining all types of disciplinary action of the corporation.
For making a well-trained administration must me selected the rules and regulation.
Function of personnel discipline.
Take short term and long term development planning for the executive of a corporation.
Maintained the relation with the ministry.
Functions which are all related with the officers union.
Pension & welfare Department:
Dealing retirement benefits i.e. gratuity, pension, provident fund etc.
Determine corporations employees pension and gratuity
Monthly pension payment
Pension holders medical alliance define
Future fund fee collection and reserve
Invest pension fund in a profitable field
Savings welfare accounts
Policy Formulation/ Framing of Rules
Interpretation of policy/ rules
Relaxation of rules in individuals cases
Exemption from rules
Facilitating Redressed of grievances
Page 40

Procurement & service Department:
This department deals with purchase and sales office supplies, office equipments etc.
Maintain the utility service like telephone bill, electric bill etc.
Examine the quality of the product purchase.
They also gave tender offer to the supplier or buyer for the purchase or sale of the scrapes
and wastage.
Secretary's Department:
Arranging meeting of board of directors Executive Committee and other committee
Placing working papers to the Boards of Director
Maintaining attendance register of directors.
Obtaining signature of the chairman on the minutes book.
Collect and send any action needed to approve or implement
Maintaining register of shareholders of the company.
Making payments of dividend to the shareholders.
Arranging of Annual General Meeting
Public Relation Department:

Maintain the close relation with the ministry of Finance & other concern.
Help publishing all types of official advertisement.
Help focusing ICB through mass-media.
Publish internal newsletter or journal etc.
Law Department:
This department handles all the legal affair of ICB.
Prepare legal documents, advance agreements, share agreements, demand promissory
notes, memorandum etc.
Process litigation cases, prepare legal notice and refer cases to legal advises and
coordinate with legal adviser in the court.
Prepare necessary memos for placement in the board meeting relating litigation & legal
affair.
Page 41

Investors Department:
Opening and maintaining of investors account Sanction loans against deposit in
Investment accounts, provide account loan margin at 1:2 ratio subject to ceiling of Tk-.
0.3 Million at a rate of Interest of 13. 5 %.
Buy and sell shares on behalf of the investors both from the primary and secondary
market.
Counsel investors in respect of building up their portfolios.
Withdraw funds and shares from investment accounts.
Issue Income tax certificates. Portfolio Statement account statement etc.
Receive direct applications against public issue of shares.
Collect commission as banker to the Issue and brokerage commission from the
companies.
Processing of withdrawal of fund.
Calculate quarterly interest of all investors account.
Shares Department & Reconciliation cell:

To avoid complexity, the function of department is divided into four sections:
1. Funds Portfolio section
2. Investors portfolio section
3. Sale and Withdrawal Section
4. Dividend Collection Section
a) Funds Portfolio Section

Receiving of IPO shares, making arrangement of filling up of 117 forms and splitting, up
shares information market.
Receiving of sales order from securities purchase & sale Committee and providing
information to the transaction department.
Delivering of sold securities to the transaction department.
Receiving Of bonus and right share, and allocates properly.
Page 42

b) Investors Portfolio Section
The purchase of shares in the investors accounts.
Receives shares from the transaction department for preservation.
Send shares and. debentures at the time of book closure for making, registration in the
name of the particulars investors.
Receives shares and debenture from the companies after registration
Collect bonus or right shares and allocate to accounts accordingly.
c) Sale and Withdrawal Section

Receive sale and withdrawal order from the investors department.
Examine the actual existence of securities and to get out of the same from the volt.
Give information to the computer department about salability of the Securities.
Making arrangement for the signature of attorney & filling up of 117 forms.
Send the securities to the investor department in case of withdrawal.
d) Dividend collection Section

Procurement of dividend and interest declared by the different companies
Unit Sales Department:

Act as manager of unit fund.
Sell and issue unit certificate to the applicant.
Repurchase unit certificate.
Co-ordinate activities of Bank Branches in respect of unit sale and repurchase.
Determine sale and repurchase prices of unit certificate it to Bank Branches and ICB
Branches.
Spilt and consolidate unit certificates is as requested by unit holders.
Issues and distributes Cumulative investment plan (CIP) Certificates.
Cancellation of surrender certificate.
Page 43

Unit registration and procurement department:
Register and transfer unit certificates
Maintain separate register for unit holder CIP
Verify signature of transfer deed
Issuance dividend warrants and CIP c-Certificates to the holders.
ICB Branches and Bank Branches as per requirement
Coordinate all activities relating to procurement and issue of unit certificates.
Mutual Funds Department:

Act as manager of all mutual funds.
Prepare prospectus in connection with the floatation of mutual funds.
Receive applications form the general public in respect of new issues of mutual fund.
Scrutinize the applications for allotment Of Shares against applications made.
Arrange for lottery if necessary for allotment.
Issue allotment letters/share certificates.
Arrange refund of excess application money.
Effect transfer and registration of certificates
Issue dividend warrants to the holders of the certificates.
Make correspondences with the branches of the Corporation, Banks and Certificate
holders.
Central Accounts Department:

Preparation of salary statements, overtime Statement.
Maintaining liaison with commercial audit and external audit.
Preparation of annual budget and revise it as per requirement.
Preparation of Financial Statement of the corporation.
Arranging call loan & term deposit.
Page 44

Computer Department:
Maintaining the network system.
Developing new software.
Servicing of hardware & Software troubleshooting.
Maintaining bulk amount of data.
Providing assistance to the officials for being efficient Computer use.
Loan Appraisal Department:

Receiving application from the entrepreneurs.
Appraise the proposed project.
Submit the appraisal report to the board and consortium.
Visit the project and make a feasibility, study on the proposed project.
Business Development Cell:

Introduce new financial products.
Maintaining liaison, with SADF.
Provide creative ideas to diversify the business.
Project Implementation Department:

Disbursement of loan as per sanctioned.
Monitor the progress of the project.
Provide counseling, for solution of any dispute and problems.
Recommend for more loan if project need thereafter.
Recovery & Follow up Department:

Measures operational performance.
Meet the sponsors as the recovery would be smooth.
Identifying the sick project and restructure them.
Assist law department in case of default.
Page 45

Private Placements:
ICB is authorized to act as an agent of the issuers and investors for private placements of
securities. Under this arrangement, ICB places securities to individuals/institutions on behalf of
the issuer for which it charges fees. ICB also acquires shares/securities for its own portfolio both
in pre-IPO placement and equity investment.
Underwriting:
In order to raise long-term equity from the primary market, the government bodies,
enterprises, corporations or companies may seek intermediary assistance from ICB in the form of
underwriting. Because of its long and proven experience, reputation, asset back up and
established network of regional offices, ICB is an excellence position to attract the potential
investors to the proposed issue of shares, debentures and other securities for successful floatation
of IPO and placement.
Custodian and Banker to the Issues:

To act as the custodian to the public issue of Open-end & Closed-ended Mutual Funds,
ICB provides professional services. It also acts as the Banker to the issues and provides similar
services through the network of its branches.
Mergers and Acquisitions:

Companies willing to expand their business through mergers or acquisitions or to divest
projects that no longer fit into present scale of operation contact the Corporation. ICB provides
professional services & advice in respect of shaping up the cost and financial structures to ensure
best possible operational results. Besides, in case of divestment, the corporation, through
network and established business relationship, bring buyers and sellers together, help them
negotiate
final
agreement
and
advice
on
the
emerging
corporate
structure.
Corporate Financial Advice:

Companies and Government enterprises intending to go public often seek professional &
financial advice on corporate restructuring & reengineering. ICB through its expertise provide
such services.
Page 46

Bank Guarantee Scheme:
As part of ICBs, business diversification programs, the corporation introduced bank guarantee
scheme during the year 2002-2003. ICB provides:
i) Bid Bond for enabling the business people to participate in any tender or bidding.
ii) Performance Bond for helping the business community to continue the business
smoothly by fulfilling their obligations promised by them to their clients
iii) Customs Guarantee for solving different disagreements between the customs authority
and the business classes at the initial stage. The maximum limit of guarantee is Tk. 20
million and would be issued against at least 20% cash and 80% securities that can be
easily liquidated or against100% cash margin. Re-guarantee from other financial
institution is required for guarantee against the amount exceeding Tk. 20 million.
ICB Unit Fund:

It is an open-end mutual fund scheme launched in April 1981, through which the small
and medium savers get opportunities to invest their savings in a balanced and relatively low risk
portfolio. ICB has so far declared attractive dividends on units every year ranging from Tk. 11.50
to Tk. 25.00 per unit. Investment in units enjoys tax benefits, amount being applicable as per
law. However, under the ICBs restructuring program new unit certificates are being sold by
ICBs subsidiary company, the ICB Asset Management Company Ltd.
Page 47

Subsidiaries Company of ICB:
ICB Securities Trading Company Ltd. (ISTCL):
ICB Securities Trading Company Limited (ISTCL) is a subsidiary of Investment Corporation of
Bangladesh (ICB) under the provisions contained in Section-2 of the Companies Act, 1994. It
was formed as a part of the restructuring programmer of ICB under Capital Market Development
programmer (CMDP) initiated by the Govt. of Bangladesh (GOB) and the Asian Development
Bank (ADB) and in terms of power conferred in the ICB Ordinance. The company was
incorporated with the Registrar of Joint Stock Companies and Firms under the Companies Act
1994 on 05 December 2000. The company obtained license from the Securities and Exchange
Commission on 12 August 2002 to carry on the stock brokerage business. The company started
its operation on 13 August 2002 upon the issuance of gazette notifications by the Government.
The company is being operated pursuant to its own Memorandum and Articles of Associations,
SEC's Rules and regulation and other applicable laws. It has independent Board of Directors and
separate management.
ICB Asset Management Company Ltd. (IAMCL):
ICB Asset Management Company Ltd. was established as part of the restructuring program me
of ICB under Capital Market Development Programmed (CMDP) initiated by the Government of
Bangladesh and the Asian Development Bank. The Company was incorporated as a public
limited company with an authorized capital of Tk. 1000 million and a nominal paid up capital of
Tk. 0.20 million, which was subsequently increased to Tk. 120.0 million, under the Companies
Act, 1994 with the Registrar of Joint Stock Companies and Firms on December 05, 2000. The
Company obtained license on October 14, 2001 from the Securities and Exchange Commission
(SEC) under to carry out the mutual fund activities. The company started its operation from July
01, 2002 upon issuance of Govt. gazette notification.
The company is engaged in investment management; more specifically floating and managing
both open-end and closed end mutual funds. The company is dedicated towards development of
mutual fund industry as well as the capital market of Bangladesh.
Page 48

ICB Capital Management Limited (ICML):
Underwriting
In order to raise long term debt and equity from the primary market, the Government bodies,
Enterprises Corporation or companies may seek intermediary assistance from ICML in the form
of underwriting.
Issue Management
To act as the manager to the issue of shares and debentures, ICML provides professional services
in respect of syndicate underwriters and bankers to the issue. Besides, it also helps in preparing
prospectus, getting their approval from SEC and arranges publication of the same.
Placement of Shares
ICML acts as a placement agent.
Investment Counseling
ICML provides investment counsel to the issuers and investors' including financial engineering
and corporate advisory services.
Managing Investment Accounts
ICML, at its discretion, may grant loan at a ratio of 1:1 against the assets of an account subject to
a maximum limit of Tk.2.5 million. An accountholder may use the combined balance of his/her
equities and loan to buy shares/securities. To help the investors to develop diversified and
balanced portfolio to minimize risk and earn a reasonable return. ICML provides professional
advice and other support services.
Page 49

3.6 Commencement of operations of the Subsidiary Companies:
Formation & Registration of Three Subsidiary Companies
5 December 2000
ICB Capital Management Ltd.
1 July 2002
ICB Asset Management Company Ltd.
1 July 2002
ICB Securities Trading Company Ltd.
13 August 2002
Registration as a Trustee with SEC
20 August 2002
Registration as a Custodian with SEC
20 August 2002
Bank Guarantee Scheme
21 June 2003
Advance Against ICB Mutual Fund /ICB AMCL Unit Certificates
21 June 2003
Scheme
Consumer Credit Scheme
15 February 2004
Venture Capital Financing Scheme
26 April 2007
Purchase of own Land (Agargoan)
3 March 2008
Equity and Entrepreneurship Fund (EEF)
1 June 2009
Page 50

3.7 Performance Evaluation of ICB Mutual Funds:
Thus my Report topic is Performance Evaluation of ICB mutual funds. So before going to
performance and evaluation part of ICB mutual funds, I write some important part of ICB mutual
funds and its activities.
3.7.1 Mutual Fund
Mutual Funds are also known as close ended Mutual Funds. The issued capital of a Mutual Fund
is limited, that is, a Mutual Fund offers a limited number of certificates for sale to the public. The
amount of capital and the number of certificates of each Mutual Fund remains unchanged. ICB
Mutual Funds are independent of one another. A Mutual Fund being listed is traded on the Stock
Exchanges. Price of Mutual Fund certificates after IPO is determined on the Stock Exchanges
through interaction of supply and demand.
3.7.2 Types of Mutual Fund:
Any Mutual Fund could be of either of the following two kinds
Open-end Mutual Fund
Close-end Mutual Fund
3.7.2.1 Open-end Mutual Fund:

Open-end investment company is a fund that continues to sale and repurchases their shares after
their initial public offering. They stand ready to sell additional number of shares and thus keep
going larger. The open-end fund company can by or sale their own shares.
3.7.2.2 Close-end Mutual Fund:
A close-end investment company operates like any other public firm. Their stock is traded on
regular secondary market and the market price of its shares is determined by the supply and
demand. It has a definite target amount for the funds and cannot sell more shares after its initial
offering. Its growths in terms of number of shares are issued like any other companys new
issues listed and quoted it stock exchange.
Page 51

3.7.3Objective of Mutual Fund:
The objective of any fund would fit into one of three broad categories.
i) Income: The emphasis is on producing a steady flow of dividend payment.
ii) Capital gain: The manager concentrates on increasing the value of principal
through
appreciation of the stocks held.

iii) Income and capital gain: Some combination of the first two approaches.
3.7.4Advantages of Mutual Fund:
Mutual Fund substantially minimizes the investment risk of small investors through
diversification in which funds are spread out into various sectors, companies, securities as
well as entirely different market.
Mutual Fund mobilizes the savings of small investor and channels them into lucrative
investment opportunities. As a result, Mutual Fund adds liquidity to the market.
Mutual Fund provides the small investors access to the whole market that at an individual
level, would be difficult if not impossible to achieve.
Because funds are professionally managed, investors are relieved from the emotional
strain associated with the day to day management of the fund.
The investors save a great deal in transaction costs given that s/he has access to a large
number of securities by purchasing a single share of a Mutual Fund.
The investors can pick and chase a Mutual Fund to match his/her particular needs.
Mutual Fund is the only vehicle which operates simultaneously both at the demand as
well as the supply side of the market. On the supply side, the Mutual Fund being itself
security at the SEC introduces a good and reliable instrument in the capital market for the
small but astute investor.
Mutual Fund is one of the most strictly regulated investment vehicles. The laws
governing Mutual Fundrequire exhaustive disclosure to the SEC as well as the general
public. The laws also entail continuous regulations of fund operations by the Trustee.
Page 52

3.8 Launching of ICB Mutual Fund:
Launch Mutual Fund in different period with different paid up capital.

Mutual Fund
Date of Floatation Paid up capital (Tk. In million)
First ICB Mutual Fund
25 April,1980
7.50
Second ICB Mutual Fund
17 June,1984
5.00
Third ICB Mutual Fund
19 May,1985
10.00
Fourth ICB Mutual Fund
6 June, 1986
10.00
Fifth ICB Mutual Fund
8 June, 1987
15.00
Sixth ICB Mutual Fund
16 May,1988
50.00
Seven ICB Mutual Fund
30 June,1995
30.00
Eighth ICB Mutual Fund
23 July,1996
50.00
Source: Annual Report of ICB Mutual Fund 2012-13.

From the table we can see that, launching date 16 may 1988 and 23 July 1996, 6th and 8th ICB
Mutual fund paid up capital is high (50 million). The lunching date 17 June 1984 Second ICB
mutual fund paid up capital is low (5 million).
Page 53

3.9 Operational Result:
Table no. Net income for the year, distributable income per certificate, ex-dividend intrinsic
value per certificate.
Name of the fund
Net income for the
Distributable
Ex-dividend
year 2012-13 (Taka)
income per
net asset value
certificate as on 30
per
June 2013(TK)
certificate(TK)
1st ICB Mutual Fund
75.63
161.71
872.30
2second ICB Mutual Fund
44.10
90.14
215.61
3rd ICB Mutual Fund
26.16
61.55
211.16
4th ICB Mutual Fund
29.24
66.33
205.24
5th ICB Mutual Fund
23.45
46.79
168.92
6th ICB Mutual Fund
10.99
20.53
49.64
7th ICB Mutual Fund
13.53
29.87
86.60
12.47
25.99
59.09
th
8 ICB Mutual Fund
Source: Annual report of ICB mutual funds 2012-13.

From the above table we can see that, during the period 2012-13, net income 1st mutual fund is
high and low 6th ICB mutual fund. The distributable income per certificate and Ex-dividend Net
asset value per certificate is high of ICB 1st Mutual Fund and 6th& 8th Mutual fund is low.
3.10 Detailed description of ICB mutual funds:

ICB is the pioneer organization of initiating mutual fund in BD. The countrys first fund, the
First ICB Mutual Fund was lunched on 25 April 1980.Since then ICB had floated 8 Mutual
funds of total capital of TK. 175.0 million up to investors as a rewarding and relatively safe
investment instrument because of their strong and steady performance in terms of dividend and
portfolio management.
Page 54

3.10.1 First ICB Mutual Fund
The 1st ICB Mutual Fund was floated at 25th April, 1980, under regulation 29 A of ICB (General)
Regulation with a total capital of TK. 50,000 certificates of TK. 100 each. It is the most
attractive mutual fund among the others.
Dividend and Interest income:
The Fund had earned an amount of TK. 12.439 million as dividend from investment of securities
of 78 companies during 2012-13 of which a sum of TK. 7.607 million (61.16 %) received in cash
within 30 June 2013.
Capital Gains on Sale of Investments:
During 2012-13, the fund has earned TK. 46.091 million as capital gain against TK. 57.108
million earned during 2011-2012 by selling securities of 31 companies.
Income, expense and distributable income:
During the year under review, the fund has earned a gross income of TK. 60.821 million by way
of dividend and interest income from investment of shares and debentures/bonds amounting of
TK. 12.439 million, TK. 2.291 million as interest on bank deposits, TK. 46.091 million as capital
gains and other income. After deducting the total expense of TK. 4.095 million incurred as staff
expense, interest on current account with ICB, management fee, printing and stationary, postage
and telegram, bank charges, provision against investment and other expense the net income of
the fund stood at TK. 56.725 million.
Dividend:
The declared dividend at the rate of 700.00 percent against each certificate of TK. 10.00 which
was 600.00 % in the previous year. After making provision of TK. 52.500 million for payment of
dividend the fund had an undistributed income of TK. 68.785 million.
Page 55

Dividend performance of ICB Mutual Fund:
Table; Year wise dividend performance
Name of the fund
First ICB Mutual fund
Financial year
2008-9
2009-10
2010-11
2011-12
2012-13
(TK)
(TK)
(TK)
(TK)
(TK)
310.00
400.00
500.00
600.00
700.00
Source: Annual report of ICB Mutual Funds 2012-13.

From the table we can see that, First ICB mutual fund dividend performance (2012-13) is high
(TK.700) and (2008-9) is low (TK.310).
Portfolio:
During 2012-13 the fund investment TK. 59.537 million in securities of different sectors. As on
30 June 2013 the fund had securities of 131 companies and 23 mutual funds in its portfolio with
a total cost of TK. 161.049 million, the market value of which was TK. 737.715 million.
The Ex-dividend net asset value per certificate of TK. 10.00 each of First ICB mutual fund stood
at TK. 872.30 as on 30 June 2013.
At DSE the opening and closing market price per certificate of First mutual fund of TK. 10.00
each was TK. 879.00 and TK. 932.00 respectively in 2012-2013.
The number of certificate holders of the fund was 815 as on 30 June 2013.
Page 56

3.10.2 Second ICB Mutual Fund
The Second ICB Mutual Fund was established in June 1984, under regulation 29 A of ICB
(General) Regulation with a total capital of TK. 50,00000dividend into 50000 certificates of TK.
100 each. The manager of the fund is vested with ICB.
of 75 companies during 2012-13 of which a sum of TK. 4.312 million (91.37 %) was received in
cash within 30 June 2013.
gains and other income. After deducting the total expense of TK. 3.094million incurred as staff
Dividend:
Page 57

Name of the fund
Second ICB Mutual
fund
Financial year
2008-9
2009-10
2010-11
2011-12
2012-13
(TK)
(TK)
(TK)
(TK)
(TK)
95.00
200.00
250.00
300.00
375.00

From the table we can see that, Second ICB mutual fund dividend performance (2012-13) is high
(TK.375.00) and (2008-9) is low (TK.95).
Portfolio:
During 2012-13 the fund has made investment of TK. 40.865 million in securities of different
sectors. As on 30 June 2013 the fund had securities of 132 companies and 22 mutual funds in its
portfolio with a total cost of TK. 97.567 million, the market value of which was TK. 173.382
million.
The Ex-dividend net asset value per certificate of TK. 10.00 each of Second ICB mutual fund
stood at TK. 215.61 as on 30 June 2013.
At DSE the opening and closing market price per certificate of Second mutual fund of TK. 10.00
Page 58

3.10.3 Third ICB Mutual Fund
The third ICB Mutual Fund was established in May 1985, under regulation 29 A of ICB
(General) Regulation with a total capital of TK. 100,00,000dividends into 1,00,000 certificates of
TK. 100 each. The manager of the fund is vested with ICB.
The Fund has earned an amount of TK. 5.036 million as dividend and interest from investment of
securities of 80 companies during 2012-13 of which, TK. 4.280 million (84.99 %) was received
in cash within 30 June 2013.
During 2012-13, the fund has earned TK. 21.056 million as capital gain against TK.
20.673million earned during 2011-2012 by selling securities of 19 companies.
the fund stood at TK. 26.161 million. Fund has net distributable total income of TK. 61.550
million and per certificate income of TK. 61.55 as on June 2013.
Dividend:
Page 59

Name of the fund
Third ICB Mutual fund
Financial year
2008-9
2009-10
2010-11
2011-12
2012-13
(TK)
(TK)
(TK)
(TK)
(TK)
85.00
140.00
185.00
200.00
240.00

From the table we can see that, Third ICB mutual fund dividend performance (2012-13) is high
(TK.240.00) and (2008-9) is low (TK.85.00).
Portfolio:
million.
The Ex-dividend net asset value per certificate of TK. 10.00 each of ThirdICB mutual fund
During 2012-13, the opening and closing market price per certificate of Third ICB mutual fund
of TK. 10.00 each was TK. 145.00 and TK. 208.90 respectively in DSE. The number of
certificate holders of the fund was 1202 as on 30 June 2013.
Page 60

3.10.4 Fourth ICB Mutual Fund:
The Fourth ICB Mutual Fund was established in June 1986, under regulation 29 A of ICB
(General) Regulation with a total capital of TK. 100,00,000 dividend into 1,00,000 certificates of
Dividend:
Page 61

Name of the fund
Fourth ICB Mutual
fund
Financial year
2008-9
2009-10
2010-11
2011-12
2012-13
(TK)
(TK)
(TK)
(TK)
(TK)
80.00
125.00
165.00
185.00
240.00

From the table we can see that, Fourth ICB mutual fund dividend performance (2012-13) is high
(TK.240.00) and (2008-9) is low (TK.80.00).
Portfolio:
million.
The Ex-dividend net asset value per certificate of TK. 10.00 each of Fourth ICB mutual fund
At DSE the opening and closing market price per certificate of fourth ICB mutual fund of TK.
10.00 each was TK. 141.50 and TK. 200.00 respectively in 2012-2013.
Page 62

3.10.5 Fifth ICB Mutual Fund:
The Fifth ICB Mutual Fund was established in June 1987, under regulation 29 A of ICB
(General) Regulation with a total capital of TK. 15,000,000dividend into 1, 50,000 certificates of
The Fund has earned an amount of TK. 8.206 million as dividend from investment of securities
Dividend:
Page 63

Name of the fund
Fifth ICB Mutual fund
Financial year
2008-9
2009-10
2010-11
2011-12
2012-13
(TK)
(TK)
(TK)
(TK)
(TK)
56.00
100.00
135.00
170.00
200.00

(TK.200.00) and (2008-9) is low (TK.56.00).
Portfolio:
million.
The Ex-dividend net asset value per certificate of TK. 10.00 each of Second ICB mutual fund
Page 64

3.10.6 Sixth ICB Mutual Fund:
The Sixth ICB Mutual Fund was established in May 1988, under regulation 29 A of ICB
(General) Regulation with a total capital of TK. 50,000,000 dividend into 5, 00,000 certificates
of TK. 100 each. The manager of the fund is vested with ICB.
Dividend:
Page 65

Name of the fund
Second ICB Mutual
fund
Financial year
2008-9
2009-10
2010-11
2011-12
2012-13
(TK)
(TK)
(TK)
(TK)
(TK)
37.00
75.00
90.00
100.00
105.00

(TK.105.00) and (2008-9) is low (TK.37.00).
Portfolio:
million.
The Ex-dividend net asset value per certificate of TK. 10.00 each of SixthICB mutualfunds stood
at TK. 49.64 as on 30 June 2013.
At DSE the opening and closing market price per certificate of Sixth ICB mutual fund of TK.
Page 66

3.10.7 Seventh ICB Mutual Fund:
The Seventh ICB Mutual Fund was established in June 1995, under regulation 29 A of ICB
(General) Regulation with a total capital of TK. 30,000,000dividend into 300000 certificates of
TK. 100 each.
of 95 companies during 2012-13 of which a sum of TK. 6.728 million (88 %) was received in
Dividend:
Page 67

Name of the fund
Second ICB Mutual
fund
Financial year
2008-9
2009-10
2010-11
2011-12
2012-13
(TK)
(TK)
(TK)
(TK)
(TK)
35.00
70.00
95.00
110.00
120.00

From the table we can see that, Seventh ICB mutual fund dividend performance (2012-13) is
high (TK 120.00) and (2008-9) is low (TK.35.00).
Portfolio:
million.
The Ex-dividend net asset value per certificate of TK. 10.00 each of Seventh ICB mutualfunds
Page 68

3.10.8 Eight ICB Mutual Fund:
The Eight ICB Mutual Fund was established in July 1996, under regulation 29 A of ICB
(General) Regulation with a total capital of TK. 5, 00, 00,000 dividend into 5, 00,000 certificates
of TK. 100 each.
of 96 companies during 2012-13 of which a sum of TK. 7.573 million (89 %) was received in

Dividend:
Page 69

Name of the fund
Second ICB Mutual
fund
Financial year
2008-9
2009-10
2010-11
2011-12
2012-13
(TK)
(TK)
(TK)
(TK)
(TK)
32.00
65.00
90.00
100.00
110.00

From the table we can see that, Eight ICB mutual fund dividend performance (2012-13) is high
(TK.110.00) and (2008-9) is low (TK.32.00).
Portfolio:
million.
The Ex-dividend net asset value per certificate of TK. 10.00 each of Eight ICB mutual funds
At DSE the opening and closing market price per certificate of Eight ICB mutual fund of TK.
Page 70

3.11 Consolidated Portfolio Statement:
As on 30 June 2013 cost price and market price of eight Mutual Funds were Tk. 13.099 million
and Tk. 29.682 million respectively. A consolidated statement of the portfolio of the Funds is
given in the following table:
Consolidated position of portfolios of ICB Mutual Funds as on 30 June 2013
Sl.no Particulars
No.
1st
2nd
3rd
4th
5th
6th
7th
8th
Mutual
Mutual
Mutual
Mutual
Mutual
Mutual
Mutual
Mutual
Fund
Fund
Fund
Fund
Fund
Fund
Fund
Fund
156
170
170
189
225
214
207
of 154
Companies
2
No.
of 5636077 4415411 5479324 5231113 6611074 8616313 10022408 10458284
Securities
3
Total
161.049
97.567
111.853
119.165
153.452
205.296
210.793
250.733
737.715
173.382
275.074
271.161
350.232
352.487
386.962
421.144
investment at
cost(million)
4
Market
Value(million)
Source: Annual Report of ICB Mutual Funds 2012-13.

From the above table we can see that, during the period 2012-13, the consolidated position of
portfolios of ICB 1st Mutual Fund market value is high ( TK. 737.715) as on 30 June 2013.
Page 71
Chapter : 4
Project Part
Page 72

PROJECT PART
4.1 Problem Statement:

From my observation and experience I have found The performance of ICB mutual fundsis quite
Good but it could be more effective if they would much more concern on performance of mutual
funds. I have identified a statement to improve the performance of ICB mutual funds.
The statement is performance and evaluation is the path of success.
I have done my project part on basis of this statement.
4.2 Project Time Line:

This study will require 44 days. The following table shows the time requirement in each step of
the study.
Table 25: Description of project activities in days
Description of Activities
Days
Develop Research Methodology
Making the research plan
Developed the hypothesis
10
Conduct survey research
10
Data analysis and Findings with Interpretation
13
TOTAL Duration
44 Days
Page 73

4.3 Budget Information:
The total expenditure to prepare this project as followed
Serial No
Particular
Amount (BDT)
1.
Questionnaires
650
3.
Mobile Bill & Internet
800
4.
Transportation cost
1580
5.
Printing and binding of Report
1000
6.
Others
1000
Total
5030
4.4 Research Methodology:

Type of research: Exploratory.
Population: All existing clients of ICB.
Elements: Customer of ICB.
Extent: BDBL Bhaban, 8, Rajuk Avenue , Dhaka 1000 & NSC Tower.
Duration: 23 October to 28 December-2014.
4.5. Data Source:
Primary Data:
Questionnaires with Structure question by the survey of banks customer.
Secondary Data:
Official website of ICB.
Brochure
Prospectors
Practicum Report
Course lecture Sheet
Annual report of ICB
Page 74

4.6 Research Design:
4.6.1 Sampling Plan:
Sample Unit: Customers of ICB.
Sample Frame:
The sample frame of this study consists of all 150 customers of ICB
The sample frame was taken from ICB.
Sampling Size: 63 customer
Sampling Procedure : Probability Sampling (Simple Random Sampling)
4.6.2 Research Approach:
Survey
4.6.3 Research Instrument:
Questionnaires with Structure question
personal Question with MCQ
4.6.4 Contract Method:
Questionnaire Survey
4.6.5 Data Analysis:
Result Findings: MS Excel
For analysis of data Microsoft Word, Microsoft Excel, different tables and graphs were used to
make the data meaningful.
Page 75
Hypotheses Test: Z test

Hypotheses were testing to derive a meaningful conclusion from the empirical data. In addition,
basic statistical techniques of different measures of central tendency have been used for
analyzing the data. As my sample size is more than 30, I have used Z test for the study. The
following formula has been followed:
Z test =
= mean value
n = sample size
= Standard deviation
= Average
Based on my analyzed, I made findings, recommendations, and conclusion.
4.7 Hypothesis Scale:
In order to analysis the data a 5 point Liker scale has been used. 1 stands for highly disagreed
customers, 2 stands for only disagreed customers, 3 stands for the neutral customers, 4 stands for
agreed customers, and 5 stands for highly agreed customers.
The scale has been shown below:
Table 26: Hypothesis scale
Customer Opinion
Weighted
STRONGLY DISAGREE
DISAGREE
NEITHER AGREE NOR DISAGREE
AGREE
STRONGLY AGREE
Page 76
4.7.1 Hypothesis Development:

With a view of fulfilling the objective some relevant hypothesis have been formulated for this
study:
H 1.
The performance of ICB Mutual funds is well.
H 2.
Mutual funds minimize the investment risk of small investors.
H 3.
Invest on ICB mutual funds is profitable for investors.
H4
Mutual funds performance depends on strong management and stuff.
H 5.
Investors are satisfied on the mutual funds of ICB.
H 6.
The roles and regulation of ICB mutual funds is client oriented.
H7
ICB mutual funds continuously improve day by day.
Page 77

4.7.2 Hypothesis Testing:
Liker t Scale
H1
H2
H3
H4
H5
H6
H7
A)Strongly
B)Disagree(2)
11
11
C)Neither
14
12
D)Agree(4)
23
19
23
24
23
19
23
E)Strongly
22
16
36
27
17
23
33
Total
240
223
280
260
230
237
274
Average
3.81
3.54
4.44
4.13
3.65
3.76
4.35
Variance
1.52
1.39
0.73
1.00
1.72
1.55
0.74
Standard
1.23
1.18
0.85
1.00
1.31
1.24
0.86
Z-test
8.45
7.00
18.12
12.94
6.97
8.07
17.07
Alternative
Accepted
Accepted
Accepted
Accepted
Accepted
Accepted
Accepted
Disagree(1)
Agree nor
Disagree(3)
agree(5)
Deviation
Hypothesis
Result
(Zcal>Ztab)
* Sources: Questionnaire Survey
Page 78

Hypothesis 1
HO: The performance of ICB Mutual funds isnt well.
HA: The performance of ICB Mutual funds is well.
HO: =2.5
H1
HA: 2.5
STRONGLY
DISAGREE
n= 63
8%
= 3.81
Standard Deviation = 1.23
DISAGREE
10%
35%
11%
Z cal =( -)/ (/n) = 8.45
NEITHER AGREE
NOR DISAGREE
At the 5% significant level, the value
AGREE
36%
of Z in Z- distribution table is Z.05=
STRONGLY AGREE
1.96
Since Z
cal>
tab,
null hypothesis is rejected. So at 5 % significant level, we can say that,
The performance of ICB Mutual funds is well.
Hypothesis 2
HO: Mutual funds cannot minimize the investment risk of small investors.
HA: Mutual funds minimize the investment risk of small investors.
HO: =2.5
H2
HA: 2.5
5%
n= 63
= 3.54
25%
18%

Z cal =( -)/ (/n) = 7.00
30%
At the 5% significant level, the value of Z in
22%
Strongly
Disagree
Disagree
Neither Agree
nor Disagree
Agree
Strongly Agree
Z- distribution table is Z.05= 1.96

Since Z
cal>
tab,
Mutual funds minimize the investment risk of small investors.
Page 79

Hypothesis 3
HO: Invest on ICB mutual funds isnt profitable for investors.
HA: Invest on ICB mutual funds is profitable for investors.
HO: = 2.5
HA: 2.5
3%
2%
n= 63
H3
2%
Strongly Disagree
= 4.44
Disagree

Z cal =( -)/ (/n) = 18.11
36%
57%
At the 5% significant level, the value of
Agree
Z in Z-distribution table is Z.05= 1.96
Since Z
cal>
tab,
Neither Agree
nor Disagree
Strongly Agree
Invest on ICB mutual funds is profitable for investors.
Hypothesis 4
HO: Mutual funds performance doesnt depend on strong management and stuff.
HA: Mutual funds performance depends on strong management and stuff.
HO: = 2.5
H4
HA: 2.5
3% 5%
n= 63
11%
= 4.13
Z cal =( -)/ (/n) = 12.94
Strongly
Disagree
Disagree
43%
38%
Neither Agree
nor Disagree
Agree

Since Z cal> Z tab, null hypothesis is rejected. So at 5 % significant level, we can Say that,
Mutual funds performance depends on strong management and stuff.
Page 80

Hypothesis 5
HO: Investors arent satisfied on the mutual funds of ICB.
HA: Investors are satisfied on the mutual funds of ICB.
HO: = 2.5
H5
HA: 2.5
5%
n= 63
= 3.65
27%

Z cal =( -)/ (/n) = 6.97
22%
Strongly
Disagree
Disagree
Neither Agree
nor Disagree
Agree
27%
19%
Strongly
Agree

Since Z cal> Z tab, null hypothesis is rejected. So at 5 % significant level, we can say that,
Investors are satisfied on the mutual funds of ICB..
Hypothesis 6
HO: The roles and regulation of ICB mutual funds isnt client oriented.
HA: The roles and regulation of ICB mutual funds is client oriented.
HO: = 2.5
H6
HA: 2.5
3%
n= 63
8%
= 3.76
Neither Agree
nor Disagree
Agree
36%

Z cal =( -)/ (/n) = 8.07
5%
Strongly
Disagree
Disagree
48%
Strongly Agree
At the 5% significant level, the value of Z in Zdistribution table is Z.05= 1.96

Since Z
cal>
tab,
The roles and regulation of ICB mutual funds is client oriented.
Page 81
Hypothesis 7
HO: ICB mutual funds continuously cannot improve day by day.
HA: ICB mutual funds continuously improve day by day.
HO: = 2.5
H7
HA: 2.5
n= 63
Disagree
8%
= 4.35
Standard Deviation = .86
Z
cal
Strongly Disagree
2% 5%
52%
=( -)/ (/n) = 17.07
At the 5% significant level, the value of Z
33%
Neither Agree nor

Disagree
Agree
Strongly Agree
in Z -distribution table is Z.05= 1.96

Since Z
cal>
tab,
ICB mutual funds continuously improve day by day.
Page 82

4.8 Research Findings:
H 1.
The performance of ICB Mutual funds is well. In this hypothesis 35% of respondents
are strongly agreed, 36% are agreed, 11% respondents are neither agreed nor
disagreed and 10% respondents are disagreed and 8% respondents are strongly
disagreed.
H 2.
Mutual funds minimize the investment risk of small investors.In this hypothesis 25%
of respondents are strongly agreed, 30% are agreed, 22% respondents are neither
agreed nor disagreed and 18% respondents are disagreed and 5% respondents are
strongly disagreed.
H 3.
Invest on ICB mutual funds is profitable for investors.In this hypothesis 57% of
respondents are strongly agreed, 36% are agreed, 2% respondents are neither agreed
nor disagreed and 3% respondents are disagreed and 2% respondents are strongly
disagreed.
H 4.
Mutual funds performance depends on strong management and stuff.In this

hypothesis 43% of respondents are strongly agreed, 38% are agreed, 11% respondents
are neither agreed nor disagreed and 5% respondents are disagreed and 3%
respondents are strongly disagreed.
H 5.
Investors are satisfied on the mutual funds of ICB.In this hypothesis 27% of
disagreed.
H 6.
The roles and regulation of ICB mutual funds is client oriented.In this hypothesis 36%
of respondents are strongly agreed, 48% are agreed, 5% respondents are neither agreed
disagreed.
H 7.
ICB mutual funds continuously improve day by day. In this hypothesis 52% of
disagreed.
Page 83
Chapter: 5
Recommendation
&Conclusion
Page 84

5.1 Recommendation:
After doing the survey I have tried to find out the probable solution of project problem. Though
my survey has shown that, there are no major problems in the mutual fund of ICB but for
improvisation and development, I have some recommendation on the basis of my statement.
Those are given below.
The performance of ICB Mutual funds is well. But to keep this performance they need to
more dissect and more development so that performance is the best and client ensure their
investment
To minimize the risk of small investor by proper utilizing money so that investor arent
stay in risky zone.
To make the investment as a money-making, they need to follow high standard strategy
so that there is no little bit possibility of loss.
ICB need to more efficient and specialized management and staff so that performance of
ICB can smooth because performance depends on management and staff most of the time
To observe the clients feedback about the performance of mutual fund of ICB either they
are satisfied or not and also follow necessary step to get the client satisfaction.
The roles and regulation should be more modernization and convenience to the clients so
those clients get the facility.
To stable in the investment sector, they need to play new policy an implemented this. By
this way, its possible to see the success with honors and glory
Page 85

5.2 Conclusion:
ICB is a unique name in our country as an investment Bank. It has skill and experienced labor
force and professional and dedicated management team that enable to pursue the ICBs goals and
objectives. ICB is helping to the industrial growth in our country by mobilizing the small savings
from investors to the capital market. ICB should be concerned about its investors, because the
investors are the risks takers. ICB has great influence in the capital market. ICB should play its
important role for gaining of the investors confidence on the capital market and further
industrial growth in our country and the development and stabilization of the capital market in
country
There remains a huge gap between institutional investors and general investors. Institutional
investors are far ahead from the general investors in respect of technical know-how, knowledge
and risk taking propensity. ICB as an institutional investor manages its portfolio by doing three
major activities: asset allocation, weighting shift across major asset classes and securities
selection within asset classes.
Mutual Fund department is appreciably innovative, explorative and dynamic. ICB should
specially continue the operation and management of mutual fund because most of the small
investors are key clients of mutual fund. But still, Mutual Fund are not above the shortcomings.
So, ICB should concentrate to increase the performance of its and way to find out the path for
overcoming the problem of operation.
We are quite optimistic that, if the given recommendations of this paper are implemented then
ICB Mutual Fund may be able to overcome its present problems and may enlarge its contribution
to the rapid development of Bangladesh Capital Market.
Page 86

Bibliography:
1.
Investment Corporation of Bangladesh (ICB) 2008-2009. Annual Report. Dhaka ICB.
2.
Investment Corporation of Bangladesh (ICB)2009-2010. Annual Report. Dhaka ICB.
3.
Investment Corporation of Bangladesh (ICB) 20010-2011. Annual Reportof Unit Fund,

Dhaka ICB.
4.
Investment Corporation of Bangladesh (ICB) 2011-2012. Annual Report of Mutual Fund,

Dhaka ICB.
5.
Investment Corporation of Bangladesh (ICB) 2011-2012. Annual Report & Annual report
of Mutual Fund, Dhaka ICB.
6.
Ahmed, MF. H.R. Khan and M.S Islam 1993, Industrial Financing through Capital market
in Bangladesh-A Study on the Demand Side (Dhaka: The Asian Foundation and the Bureau
of Economic research, University of Dhaka, June, P-47.
7.
Sharpe, W.F. (1978), Investments (Englewood Cliffs), New Jersey: Prentice-Hall, Inc).
8.
I. M Pandey (1998), Financial Management, P-97-107.
9.
www.icb.gov.bd
10.
www.istcl.com.bd
11.
www.dsebd.org
Page 87
QUESTIONNAIRES
Sir,
I am Md. Anamul Hosen, student of BBA (Major in Finance and Banking) from IUBAT
(International University of Agriculture and Technology). I am conducting my report on topic,
Performance Evaluation of ICB Mutual Funds..
For my (BUS-490): Practicum course. I need your valuable opinion. Let me assure you that all
the information provided by you will be used only for academic purpose and kept under strict
secrecy.
Customer Information
Name:
Ag: 20 25 Years
26 45 Years
More than 45 Years
Occupation: Service holder/Business Man/Students
Table 19: Customer information
Page 88
The Questions are given below:

1. The performance of ICB Mutual funds is well
a) Strongly Disagree b) Disagree c) Neither Agree nor disagree d) Agree e) Strongly agree
2. Mutual funds minimize the investment risk of small investors.
3. Invest on ICB mutual funds is profitable for investors.
4. Mutual funds performance depends on strong management and stuff.
5. Investors are satisfied on the mutual funds of ICB.
6. Roles and regulation of ICB mutual funds is client oriented.
7. ICB mutual funds continuously improve day by day.
Thank You very much for your Kind Co-operation.
Page 89

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Performance Evaluation of ICB Mutual Funds

International University of Business Agriculture And Technology

Performance Evaluation of ICB Mutual Funds

International University of Business Agriculture And Technology

Performance Evaluation of ICB Mutual Funds

International University of Business Agriculture And Technology

Performance Evaluation of ICB Mutual Funds

International University of Business Agriculture And Technology

Performance Evaluation of ICB Mutual Funds

International University of Business Agriculture And Technology

Performance Evaluation of ICB Mutual Funds

International University of Business Agriculture And Technology

Performance Evaluation of ICB Mutual Funds

1.7 Limitation of the Study:

International University of Business Agriculture And Technology

Performance Evaluation of ICB Mutual Funds

International University of Business Agriculture And Technology

Performance Evaluation of ICB Mutual Funds

To encourage and broaden the base of investment.

To develop the capital market.

International University of Business Agriculture And Technology

Performance Evaluation of ICB Mutual Funds

Investment Corporation of Bangladesh (ICB)

Investment Banking Company

Investment Corporation of Bangladesh Ordinance1976 (no. XL

Tk. 0.50 billion.

Face value of Share:

Corporation (Listed on the Stock Exchange).

ICB Asset Management Company Ltd. (AMCL)

International University of Business Agriculture And Technology

Performance Evaluation of ICB Mutual Funds

2.4 Objectives of the ICB:

The main objectives of ICB are as follows:

To encourage and broaden the base of investments.

To develop the capital market.

To promote and establish subsidiary companies for business development.

International University of Business Agriculture And Technology

Performance Evaluation of ICB Mutual Funds

ordinance for fostering rapid growth of Bangladesh economy.

International University of Business Agriculture And Technology

Performance Evaluation of ICB Mutual Funds

BSB Building (12-15th Floors)

Kashfia Plaza (1st floor)

8, DIT Avenue, Dhaka-1000.

Post Box No. 2058

VIP Road Dhaka-1000

Phone : (02) 9343288 , 8360815

Dr. Gaffar Plaza (2nd Floor)

Barisal Plaza (2nd floor)

Hemayet Uddin Road,Barisal.

International University of Business Agriculture And Technology

Performance Evaluation of ICB Mutual Funds

Figure1: Number of Employees of ICB.

International University of Business Agriculture And Technology

Performance Evaluation of ICB Mutual Funds

Managing Director (MD)

International University of Business Agriculture And Technology

Performance Evaluation of ICB Mutual Funds

Kazi Safiqul Azam

Gokul Chandra Das

Joint Secretary (Administration)

Finance Division, Ministry Of Finance

Bank & Financial Institution Division

Dr. Md. Zillur Rahman