Performance of Mutual Funds Management of Bangladesh-Evidence from Close End Mutual Funds in Dhaka Stock Exchange Limited (DSE)

UITS Journal of Business Studies Volume: 6, Issue:1, Page: 14-30

17 Pages Posted: 15 Jun 2021

See all articles by Quazi Nur Alam

Quazi Nur Alam

University of Information Technology and Sciences

Siraj Uddin Ahmed

University of Dhaka

Date Written: September 19, 2019

Abstract

The mutual fund market in Bangladesh is still small though the concept of the mutual fund was introduced in the year of 1980. Mutual fund sector is lucrative at all over the world where it has much impact on GDP and total market capitalization but Bangladesh is lagging behind in this sector and unable to make proper use of this sector. Open end mutual fund performance is quite good rather than close end mutual fund in Bangladesh. Weekly NAV data of 10 close end mutual fund has been taken in this paper. Not all the funds are doing bad, still few funds‟ performance are extraordinary. Management's inefficiency, lack of trust of investors and poor governance by regulator are the main reasons behind the poor performance of mutual fund sector in Bangladesh. Moreover, the recent unusual upsurge in the stock markets, the redemption of the matured funds, unstable margin rule, unskilled investors, asymmetric information, declaration of re-investment units as dividend have made the mutual fund industry much tougher than ever before. To bring back the confidence of the investors in the mutual fund sector this paper is bringing some recommendations to reduce the stressors up to a certain level.

Keywords: Mutual fund performance, Setback of mutual fund sector, Poor performance, Close end mutual fund, Bangladesh market

JEL Classification: G31, M41

Suggested Citation

Nur Alam, Quazi and Ahmed, Siraj Uddin, Performance of Mutual Funds Management of Bangladesh-Evidence from Close End Mutual Funds in Dhaka Stock Exchange Limited (DSE) (September 19, 2019). UITS Journal of Business Studies Volume: 6, Issue:1, Page: 14-30, Available at SSRN: https://ssrn.com/abstract=3860671

Quazi Nur Alam (Contact Author)

University of Information Technology and Sciences ( email )

Holding 190, Road 5, Block J, Baridhara, Maddha Na
Dhaka, 1212
Bangladesh
1212 (Fax)

HOME PAGE: http://https://uits.edu.bd/mr-quazi-nur-alam/

Siraj Uddin Ahmed

University of Dhaka ( email )

Ramna, Dhaka
Bangladesh

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