Thursday, 28 October, 2021

Mutual funds fetching most equity investment

  • Staff Correspondent
  • 10 October, 2021 12:00 AM
  • Print news

Mutual funds are getting the most attractive area of investment in the capital market because of their dependable gains, also contributing to market stability.

The chairman of the capital market regulator and securities experts told a webinar on Saturday.

Association of Asset Management Companies and Mutual Funds (AAMCMF) organized the event marking World Investors Week-2021.

Bangladesh Securities and Exchange Commission (BSEC) Chairman Prof Shibli Rubayat-Ul-Islam said: “Mutual funds are the most important contributor to the stability of all capital markets in the world.”

Mutual funds have been doing well over the last few years in the capital market of Bangladesh contributing to market stability, he added.

About 90 percent of mutual funds companies invest in the capital market. No other sector invests so much in the capital market. As a result, mutual funds are becoming a symbol of dependence, AAMCMF president Hasan Imam said.

He said these funds provide good capital gains to the investors and institutional investors are also giving good returns, adding that mutual funds had paid a cash dividend of around Tk 6 billion in the last financial year.

With these considerations, investing in mutual funds is becoming more attractive for investors.

Besides, it is playing an effective role in sustainable investment in the country's capital market, he stated

There are four types of investment in the capital market including mutual funds. However, in recent years, mutual fund companies have been making effective contributions to protect the interests of the country's investors and sustainable investments.

Mutual funds need to be cooperated more to make investment in the country's capital market sustainable, Imam said.

BSEC Commissioner Prof Dr Mizanur Rahman participated in the programme titled "Institutional Role in Sustainable Financing" as a special guest.

AAMCMF president chaired the event, while Acacia CEO Arunangshu Dutta was present on the occasion. Investment Corporation of Bangladesh (ICB) Managing Director Md Abul Hossain spoke as the negotiator.

Bank Asia Limited president and Managing Director Md Arfan Ali said that the financial sector and mutual funds need to work together to develop sustainable and quality markets in the country. 

Speakers at the seminar suggested enhancing the inter-communication between the sector stakeholders and to create new products and investment fields.