Icb Metual Fund

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A Brief Research on Investment Corporation of Bangladesh.

Submitted to: Abdullah Al Abed
Course instructor,
Fin- 405 (01)
School of Business
Independent University, Bangladesh
Baridhara, Dhaka

Submitted By: Ramin Ahmed-0610193
Anika Kamal-0630042
Md. Iftakharul Islam-0610178
Shakil Naheyan Payel-0610065

19-11-2009

To
Abdullah Al Abed
Course Instructor
FIN 405
Independent University, Bangladesh
Baridhara, Dhaka.

Subject: Submission of the Term Paper.

Dear Sir,

In the following pages, we have presented a Term Paper on Investment Corporation of Bangladesh, as per the partial requirement of the course Finance 405.

We tried our level best to include all relevant information and explanation to make the paper interesting and informative. All provided data is authentic as per the ICB personnel we referred to and also some finance books and websites, the names of which are mentioned in the reference page.

We had a great experience while preparing the Term Paper, which is both positive and motivating. There are lots of things we have learnt about Non-banking financial organizations while preparing this paper, which otherwise we would not have learnt. We are really very sorry for bothering you regarding our work, but this could not be helped.

At last, we would like to express our sincere appreciation and thanks to your help while preparing the Term Paper. We shall be glad to answer any queries that you may have in this regard.

Sincerely yours,

---------------------- ----------------------- ------------------------ ----------------- MD. Iftakharul Islam Ramin Ahmed Shakil Naheyan Payel Anika Kamal 0610178 0610193 0610065 0630042

Executive Summary

The Investment Corporation of Bangladesh (ICB) was established on the 1st October in 1976 under the Ordinance No. XL of 1976, with a view to broaden the base of investment to develop capital market and mobilize savings.

For stabilizing and development of capital market in our country, the ICB is investing through Investment Scheme, Unit fund and Mutual funds. It also acts as an underwriter and lease financer. It also includes the scheme of term deposit and loan against Unit Certificates.

The investors are discouraged to invest in the ICB by borrowing from ICB due to the high interest rate.

The main focus of this term paper is in ICB’s Mutual Funds. The ICB floated 8 (eight) close ended Mutual Funds with a total paid up capital of Tk 17.50 crore. Because of the professional team; the investors get attractive dividends and make capital gains from the funds and this increases the general interest of the investors to invest in Mutual Funds. ICB is the dominating figure in the mutual fund industry of Bangladesh.

Brief History of ICB
Investment Corporation of Bangladesh (ICB) is a state owned corporation. It’s mainly an Investment Bank. As a Financial Institution it mobilizes funds from the surplus units to the deficit units by means of different instruments. After the independence, the investment in private sector was limited to 25 lacs by the investment policy of the Government. This figure was changed to 3 crores by 1972. Later it rose to 10 crores. In revised investment policy, which was announced in the December of 1975, the Government announced its decision to reactivate the stock exchange and examine the question about creating the Investment Corporation of Bangladesh. After recommendation from officials, the decision was made by the government to create the Investment Corporation of Bangladesh and based on that decision ICB was established on first October 1976, under “The Investment Corporation of Bangladesh Ordinance, 1976” (No....
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