‘Mutual funds performing well despite crisis’

The key income source for mutual funds is the stock market, but the country’s stock market has now been in crisis, speakers said.

At the same time, the dividend payments of the listed companies have gown down. But, amid these all odds, the country’s mutual fund sector delivered good dividends in the last financial year, they added.

The speakers made these remarks at a seminar titled ‘Role of SDG Analytics in Capital Market-Based Development Financing’ organised by the Association of Asset Management Companies and Mutual Funds (AAMCMF) on the occasion of ‘World Investor Week 2023’ at the Agargaon in the capital on Tuesday.

The seventh annual World Investor began Monday on the premises of the Bangladesh Securities and Exchange Commission (BSEC) and will continue until October 12.

The International Organization of Securities Commissions (IOSCO) launched the programme, and marking this event, the BSEC, along with the capital market stakeholders, are highlighting the importance of investors’ knowledge about the capital market and their protection.

At the event, Dr Mizanur Rahman, commissioner of BSEC, said the stock market regulator is moving to increase transparency in mutual funds by making it mandatory to make every portfolio-related statement public.

He expressed his hope that this sector will advance a lot in the next 10 years.

The BSEC commissioner also said the BSEC is working to ensure transparency and accountability in the mutual fund sector.

“Investing in this sector offers better returns than FDR in banks. The commission is working to ensure that this sector can give better returns.”

Speaking at the event, BSEC Commissioner Shaikh Shamsuddin Ahmed said mutual funds reduce the risk for investors. He urged the investors to invest through mutual funds.

Mutual funds will not do well if good companies are not brought to the market, he stated.

Dr Hasan Imam, president of the Association of Asset Management Companies and Funds (AAMCMF) and chairman of RACE Group, said mutual funds are the largest institutional investors in the stock market. This sector is doing well despite many obstacles. Where the stock market is negative, this sector has improved.

He said the stock market has been downgrading since the last financial year. The Blue Chips-30 index, which is the most invested blue chip company by mutual funds, was also negative. Despite this situation, mutual funds paid cash dividends of Tk 283 crore in the business for the financial year 2022–23.

He also claimed that the mutual fund sector of Bangladesh is doing well compared to other countries in the world.