Performance of Mutual Fund of Investment Corporation of Bangladesh (ICB)

Abstract

ICB is a unique institution in Bangladesh. Its main function is to make market active and efficient. It has profit making objective also by operating mainly the small & medium investments in the capital market. So, it is important to evaluate the performance of it and I make an analysis of their performances.

The performance of unit fund is very much acceptable. The liquidity, leverage & profitability situation is good but P/E & dividend payout ratio is not impressive. The performances of all mutual funds are good and 1st mutual fund is in the best position. The performance of ICB & its subsidiaries are excellent according to liquidity & leverage situation. Profitability situation is also good but dividend yields ratio is not attractive.

In 2005-2006 performance was not very satisfactory level .Capital market was bearish at that time. But among 3 years, 2006-2007 gives the higher results. The performance in 2006-2007 is very good.

In some areas ICB should focus on price earning, dividend payout & dividend yield ratios. And it should implement the fundamental analysis, focus more on long term view, and try more to make market efficiency of strong level.