THE performance of the most of the Mutual Funds (MF) now in force is quite unsatisfactory. One of the most glaring examples of this underperformance lies in the fact that the market values of these MFs are much below their face value. In the past ICB used to be known for its management of Mutual Fund, but at present its performance is not up to the mark for reasons best known to it. It may be mentioned here that as on September 01, 2016 the net asset value (NAVs) of a good number of MFs being managed by the ICB were below Tk.8.00 (Taka eight) per unit as against the face value of Tk.10.00 (Taka ten) and that their market values were also much below the asset value, because of the fact that they cannot make profit at a reasonable rate. Amongst all the asset management companies (AMCs), only those which manage the Mutual Funds of the Southeast Bank Ltd. and that of the National Life Insurance Ltd are doing well.
As regards the remaining MFs under the management of AIMS, LR Global, RACE, their performance is also unsatisfactory in terms of return on profit. Some do not give any cash dividend while others are not making any sustainable profit.
In order to fulfil the very purposes of issuing the Mutual Funds it is necessary that the MFs managed by an experienced, efficient, honest and reliable AMCs. Hence the authorities concerned are requested to do the needful in order to protect the investors' interest.
Md. Abdus Salam
House No. 1, Lane 7
School Road, Ward-2
Madhuya Nandipara
Dhaka-1214
- Friday, 22 November 2024 |
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