Role of ICB & ICBMutual Fund in the Development of Capital Market in Bangladesh

Abstract

Investment Corporation of Bangladesh (ICB) is a statutory corporation. It is mainly an investment bank. An investment bank is a financial institution, which by selling securities and deployed funds to the detail economic unit's also buying underwriting securities. The establishment of ICB along with re-opening of DSE in the same year were two of the far reaching measures taken by the government to, on the one hand, accelerate the pace of industrialization and on other hand, develop and well organized and active capital market, primarily security market. ICB has hold now three subsidiary companies as on July 1, 2002.1CB has adopted this new line of business policy for providing better management, better and quick customer services, in sum from specialization. The objective of the study is to gather knowledge about portfolio performance analysis of ICB.Being the largest institutional investor, ICB contributes significantly to the development of the country's capital market through active portfolio management which is one of the important functions of ICB. There are altogether eleven portfolios which are being managed by ICB- eight of them are mutual funds, two are ICBs own portfolio and the rest one is unit fund portfolio