Performance analysis among Mutual Fund Managers of Bangladesh

Abstract

This project paper is prepared as requirement of BBA program of United International University. This project provides an overall Performance analysis among mutual fund Managers of Bangladesh (ICB, AIMS & RELIANCE) based on five years financial data. We know that, mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. These investment should be fundamentally in nature. Mutual funds have favorable and unfavorable compared to direct investing in individual securities. The primary advantages of mutual funds are that the provide economies of scale, a higher level of diversification, they provide liquidity, and they are managed by professional investors. Primary structures of mutual fund include open-end funds, unit investment trusts, and closed-end funds. Exchange-traded funds are open-end funds or unit investment confidence that bartering on an exchange. Mutual funds are also classified by their principle investments as money market funds, bond or fixed income fund, stock or equity funds, hybrid funds or other. Funds may also be sorted as index funds, which are passively managed funds that match the performance of an index, or actively managed funds. Therefore, the research in mutual fund managers has increased significantly. Although this huge demand of mutual fund investing, only a few researches on mutual fund managers have been conducted in Bangladesh. In this paper an attempt to made an evaluation of the performance of eight close-ends Bangladeshi mutual funds under ICB, AIMS, RELIANCE that traded in DSE (Dhaka stock exchange) based on return over the five years. This project paper is divided into several parts. First part is the introduction, it includes overview of mutual funds and different aspects and kinds of mutual funds and history. Moreover, the next part is performance evaluation of mutual funds manager where the different parts of investment policy, risks factors, role of manager and duty of fund manager has been discussed. And then the next part is about "performance evaluation of ICB, AIMS & REALIANCE fund managers” This part is the main part of the report, that provides adequate information of the company whether it is on good or on bad position to evaluate a manager’s performance. And this analysis of a portfolio manager will provide a concise approximation to an investor that which the mutual fund is worth to invest or not.