Internship Report on Role of ICB in the Capital Market of Bangladesh

The Investment Corporation of Bangladesh (ICB) was established on the 1st October 1976 with a view to broaden the base of investment to develop capital market and mobilizing savings in our country. The ICB acts as an investment company and Developing Financial Institution (DFI) under the license of Merchant Bank.

The ICB is operated with the help of different departments as a unit in a sound corporate environment. For the stabilizing and development of capital market across the country,
The ICB invested through Investment Scheme, Unit Fund and Mutual Funds. It also acts as underwriter and financier. It also introduces the scheme of term deposit and loan against Unit Certificates.

With the approval of the Government, The ICB launched Unit Fund in April 1981. Its main objective is to accelerate the economic development for meeting the demand of growing industrial development by way of mobilizing savings of small and medium savers. The ICB Unit Fund was open-ended. At the suggestion of ADB and WB for the development of banking sector in Bangladesh, with the discussion with Government, ICB Unit Sales Department stopped issuing new unit from 1st August 2002. The ICB Unit Fund played an important role in the socio-economic development of the country.

The ICB Mutual Fund is a close-ended fund, which is traded in the Stock Exchange. The ICB floated eight Mutual Funds with a total paid up capital of TK.17.50 crore. The ICB Mutual Funds are professionally managed and diversified in various sector in such a way so that risks are substantially lower and returns are optimal. The investors get attractive dividends and make capital gains from these funds.

1. Introduction
The Investment Corporation of Bangladesh (ICB) was established on 1 October 1976, under “The Investment Corporation of Bangladesh Ordinance, 1976” (no. XL of 1976). The establishment of ICB was a major step in a series of measures undertaken by the Government to accelerate the pace of industrialization and to develop a well-organized and vibrant Capital Market particularly securities market in Bangladesh. ICB caters to the need of institutional support to meet the equity gap of the companies. In view of the national policy of accelerating the rate of savings and investment to foster self-reliant economy, ICB assumes an indispensable and pivotal role. Through the enactment of the Investment Corporation of Bangladesh (Amendment) Act, 2000 (no. 24 of 2000), reforms in operational strategies and business policies have been implemented by establishing and operating subsidiary companies with ICB as the holding company.

Origin of the study
To match theoretical knowledge with that of practical field, internship plays a vital role for the students of business education. With this program the student get experiences and know that how much theoretical knowledge is deviated from the real facts. To give that test, each business students of Dept. of Marketing, University of Dhaka has to carry out an internship program. That’s why; I had been placed for internship program in Investment Corporation of Bangladesh (ICB) for a period of three months.

Objectives of the report
The main objective of this report is to assess the performance of ICB Unit and Mutual Funds. Other objectives of this report are as follows:
Ø To investigate the different functions performed by different department of ICB
Ø To know how ICB floats and manage the Unit and Mutual Funds
Ø To find out the customer satisfaction about Unit and Mutual Funds.
Ø To assess the performance of the different schemes effectiveness of the schemes.
Scope of the report
The scope of the study was in the organization Investment Corporation of Bangladesh (ICB). The study was confines only on the head office and gave more concentration on it. Another further emphasizes of the unit and mutual funds merchandizing operations, as it is the focused area of my study.

1.5 Limitation of the report
But some problems hampered me to find out the true picture of all Mutual Funds. I have worked in all the department of ICB one after another. ICB is a larger corporation and therefore study time 12 weeks is too short to prepare a comprehensive report on ICB Mutual Funds. Other constraints I have faced during the course of my study is as follows:
Ø To concentrate only Unit and Mutual Fund, I have failed to focus on other schemes.
Ø To assess customer satisfaction level of Unit and Mutual Fund, I have failed to reach most of the customers.
Ø Information are collected only from head office and local office of Dhaka city.