The mutual fund sector registered a gain of 8.73 percent last year against 5.19 percent by DSEX, the benchmark index of the Dhaka Stock Exchange, on the back of good performance of asset managers.
“We could have generated more gain if the market remained stable,” said Yawer Sayeed, managing director of AIMS of Bangladesh, a pioneer in private sector mutual fund operations.
All asset managers in the industry had outperformed the market gauge in terms of return on investment, LankaBangla Securities said in its yearly analysis.
The sector is trading below its asset value, which is attractive for investors, it added.
The biggest gainer last year was the Fourth ICB Mutual Fund, which rose by 37.69 percent, while the ICB Islamic Mutual Fund was the worst loser, plunging by 2.3 percent.
Among the 39 mutual funds, only six are trading at a premium and all other funds at a discount, LankaBangla said.
The industry's current price to net asset value (NAV) ratio stands at 0.76, which means the close-ended mutual funds are trading on discount, it said.
The NAV of a mutual fund shows its ability to give dividends to unit holders. When the NAV of a fund rises beyond its face value, it is more able to give dividends.
Based on the latest NAV, the market capitalisation of the mutual fund sector stands at Tk 3,630 crore.
A mutual fund is a professionally managed collective investment scheme that pools money from many investors to invest in stocks, bonds and short-term money market instruments.
The top assent manager in terms of asset under management is Race Asset Management Company having 45 percent market share in the industry, followed by LR Global Bangladesh Asset Management Company and AIMS of Bangladesh.