Tk 20 crore Islamic mutual fund next month
A Tk 20 crore Islamic mutual fund, sponsored by Islamic Finance Investment Ltd, will be floated next month.
The Investment Corporation of Bangladesh (ICB) is the trusty of the 10-year mutual fund styled 'Islamic Finance Investment Ltd Mutual Fund One', while ICB Asset Management Company Ltd is the issue manager of the fund.
The ICB at a board meeting yesterday approved the mutual fund, which will be submitted to the Securities and Exchange Commission next month for its approval, sources said.
The raised money through the mutual fund will be invested in other securities on the stock exchanges.
According to experts, mutual funds are needed for sound stock market. The contribution of the existing mutual funds in terms of market capitalisation to the stock markets is around 3 percent, which is even more than 50 percent in many developed countries, they said. Now, there are only 14 mutual funds on the country's stock exchanges.
The ICB AMCL is managing 11 mutual funds, while private AIMS is managing two mutual funds.
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