Customer perspective of ICB

Abstract

The Investment Corporation of Bangladesh (ICB) was established in October 1976, under the “Investment Corporation of Bangladesh ordinance, 1976(No. XL of 1976)”. ICB was established to develop capital market to mobilize savings. There are several departments in ICB, which are involved in managing investors, accounts, mutual funds, unit funds and others matters related to capital market. My main focus on this report is ICB’s mutual funds. ICB floated eight mutual funds, which are close-end mutual funds. Total paid up capital of eight mutual funds is Tk. 1775.00 lac. Mutual funds are traded in the secondary market through stock exchange. Price is determined on the basis of demand & supply. The DSE price index is dependent on the movement of the funds. When the price of the fund increases, DSE price index also increases or vice-versa. So, mutual funds have strong impact on the security market. Performance of mutual funds depends on the performance of the securities under each portfolio & how the portfolio is effectively managed. As on 30 June, 2014, the total cost of portfolio of mutual funds is Tk. 15581.39 lac. In case of this inclusion and exclusion from year to year it is shown that all these activities is done judiciary or not and what be the best alternative through market performance, Fundamental and technical analysis. From the analysis we found that the fund, which was floated earlier, is in much better situation than the other funds. The main reason behind this, there was a government rules that 15% shares of any companies’ have to be sold to ICB at the Initial Public Offering (IPO). That is why they did not have to compete in the open market. But in 1996 government has omitted this rule. Now ICB have to buy shares from the open market by competition.