Performance of Mutual Funds in Bangladesh

Abstract

Bangladesh capital market is based on share market and money market. Mutual fund is the part of capital market investment. In Bangladesh there are almost fifty to sixty mutual fund and seventeen Asset management companies. Security Exchange Commission (SEC) provides the rules and regulation for the mutual fund industry. Mutual fund managers collect money from the mutual fund investors and use this money to invest in share market or bond for the general public. There are also eight trustees and custodian. These papers mainly focus on the performance of mutual funds and also focused on the evaluation of performance of asset management companies. These reports contain net asset value (NAV) of different mutual fund from 2012 to 2018 year. By using these NAV I compare the data from one company to another company. In Bangladesh there are three types of mutual fund. Currently open ended and close ended mutual fund is operated but the exchange traded fund is not operated. Recently Security Exchange Commission launch Exchange traded fund in Bangladesh. When I analysis the mutual funds I found that most of the mutual fund NAV price per unit is lower or almost close the face value of their mutual funds. This is not good for the mutual fund industry because the new investors will not involve or invest in the mutual fund. Then I Compare five Asset management companies NAV price per unit. I found that two out of five asset management companies play a good perform in the year 2018 but the other three companies performance is very bad. Like other countries, Bangladeshi government should focus on how new investors interested in mutual fund. Security Exchange commission must be use some effective method that help the mutual fund managers to operate mutual fund in a professional way.