Performance of mutual funds of the IDLC Asset Management Limited

Abstract

This internship report is based on my experience as an intern of Finance and Administration Department of IDLC Asset Management Limited. Through the knowledge I gained from my academic courses at BRAC Business School and the practical experience in IDLC AML, I have generated this report that contains my research on “Performance of Mutual Funds of the IDLC Asset Management Limited”. This report aims to explain what mutual funds are, their state in Bangladesh, the mutual funds offered by IDLC Asset Management Limited and their financial performance as well as the industry they invest in the most, the risk they face and the grounds of improvement of the mutual fund. This report has used data that were collected from the annual reports, prospectus, discussions with the senior employees of the company and various types of data collected from previous researchers. The mutual fund industry in Bangladesh market is a developing industry with many companies both government and privately owned. IDLC Asset Management Limited is one such company that has four mutual funds (i.e. IDLC Balanced Fund, IDLC Growth Fund, IDLC Asset Management Shariah Fund, IDLC Income Fund). The funds focus on various industries such as pharmaceuticals, food, banking, government securities and more. The financial performance of these mutual funds from the last three years indicates that the IDLC Balanced Fund, IDLC Income Fund & IDLC Growth fund are performing well whereas the IDLC Asset Management Shariah Fund is in decline. The mutual funds in question faces risk in terms of credit, volatility and call-back. Lastly, the IDLC AML mutual funds can be developed through proper marketing strategy as well as changes in investment decisions so that it will have increased income and capital gains. Keywords: