Foreign investors and non-resident Bangladeshis can now invest in 'open-ended mutual fund' through Non-resident Investors Taka Account (NITA), according to a circular issued by the Bangladesh Bank (BB) on Thursday.
The open-end mutual fund does not trade on the stock exchanges. Investors usually purchase and sell them on the basis of net asset value (NAV) of the fund units.
The mutual funds generally publish their NAVs on weekly basis on every Sunday in different newspapers, including The Financial Express.
Presently, there are some 40 such mutual funds and growth funds in the country and the fund units can be purchased directly from the fund itself.
In its circular, the BB said its latest decision would give a boost to the foreign portfolio investment in the stock market.
It also asked the authorised dealers to observe due diligence regarding KYC and other matters.
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