BMSL’s mutual fund gets go-ahead

The Bangladesh Securities and Exchange Commission (BSEC) has given go-ahead to the BMSL National Housing Growth Fund.

The primary target of the open-ended mutual fund is to collect Tk 25 crore. Of that, the National Housing Finance and Investments has already provided Tk 2.5 crore and the rest of the fund will come from the general investors.

Mutual funds pool money from investors to channel it into securities such as stocks, bonds, and other assets. Depending on the profits earned, investors are then paid their share as dividends.

Open-ended mutual funds are not listed with the stock market but one can buy them from a fund managers' office on the basis of its net asset value. Similarly, investors can sell off fund units at any time at prices based on its current net asset value.

Each unit price of the fund is Tk 10. BMSL Asset Management Company is the asset manager of the fund.

Trustee and custodian of the fund is Bangladesh General Insurance and Brac Bank respectively.