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.
In this report I have highlighted on the activities of ICB, management of its mutual fund and evaluated the performance of these mutual funds. To mobilize domestic savings and to broaden the base of investment, ICB floated eight Mutual Funds and have
been managing one Unit Fund. Returns on these Funds had been quite encouraging. In chapter two of this report I have tried to give a brief overview of ICB. Chapter three contains theoretical aspects of different types of mutual funds. Chapter four contains description about ICB Mutual Funds. In chapter five I have tried to measure the performance of ICB Mutual Funds from the year 2004-05 to the year 2008-09. Chapter six contains Multiple Regression Analysis of ICB Mutual Funds. In chapter seven I have done SWOT analysis of ICB and identified the problems of ICB. In order to overcome those problems a few recommendations for the development of ICB have been suggested in chapter eight.
The striking condition in most of the underdeveloped world including Bangladesh is the large availability of local on the one hand and relatively small use of such capital in industry on the other hand. Much of the privately owned capital is either invested in non-productive sector or has gone to safe haven in foreign countries. Large amounts of capital have also been found in the pension funds and in the reserve of insurance companies. These funds if channeled into industry, the problem of financing industrialization would be solved to a great extent. Thus, application of a sound policy regime and development of some of the financial institutions such as investment finance companies, stock exchange, mutual fund etc. are crucial in mobilizing capital for industrial finance as well as development of capital market. The popularity of ICB as an alternative source of finance and the ability to fulfill the capital requirement of entrepreneurs has inspired me to work on ICB.
1.1: Origin of the Report
Internship means receiving practical training through attending particular work physically. Practically training means a way through which a person or a trainee can gather experience about the related subjects and be able to apply his or her theoretical experience in the field of real life action. Practical training is necessary to achieve complete knowledge about some thing. Internship program is actually a form of practical training.
As a student of MBA, major in Finance, internship is an academic requirement. For doing internship every student is required to work in a selected institution to enhance ones practical knowledge and experiences.
For my internship I worked on the Investment Corporation of Bangladesh (ICB), under the supervision of our respectable teacher Dr. Jamal Uddin Ahmed. My supervisor asked me to prepare a report on "Performance Evaluation of ICB Mutual Funds ".
1.2: Scope of the report
Undergoing the internship with ICB, the main scope of mine was committed to the functions laid by ICB and management process of ICB Mutual Fund and their performance. ICB is a large organization and giving a range of services to the nation. It has 42 department and all are related to one another. So time constrain restrain me from going every details of its function. Further more my theoretical knowledge about this kaleidoscopic world is unable to go far. So the scope of the study was limited to the practical aspect of ICB in the strictest sense.
1.3: Objectives of the Study
The main objectives of this report are to identify and familiarize with the organizational objectives, functions, management and analyzed performance of Mutual Funds of ICB. Other objectives of this report are as follows:-
To focus on the overall performance of the ICB Mutual Fund.
To analyze the performance of ICB, its image and its role in the capital market of Bangladesh.
To relate our theoretical learning with the practical situation.
To learn the practical aspect of the Investment Corporation of Bangladesh.
To gather knowledge of how ICB floats and manages the Mutual Funds.
1.4: Methodology
This research work of this report is a descriptive one. The research involved both qualitative and ative analysis. The data have been collected from the following sources.
Primary data source
i) Personal Interview: This is the most effective way to collect primary data. Through this process the trainee can confront a number of officials of ICB and shareholders. I interviewed them by asking financial operation of ICB.
ii) Briefing Session: In case of corporate organization, this method is very useful. During internship period we visited different department of ICB and took part in briefing session. The head of departments gave briefs to the trainees which were very much useful for us and we gathered some valuable information from their briefing.
iii) By Observation: This process is very useful for gathering primary data. This process is very costly, time consuming. Through this process limited but accurate data can be collected.
Secondary data source
· Annual reports, memos and brochure of ICB, Mutual Funds, Unit Funds.
· Different books, journals, articles etc.
· General information about ICB.
· Monthly review of DSE, Bangladesh Bank monthly economic trend, SEC regulations etc.
· Annual reports of three subsidiary companies of ICB.
1.5: Limitations of this Study
In preparing this report I faced some limitations. During this Internship I worked all the departments of ICB one after another for eight weeks. ICB is a large autonomous corporation, but two months study time is too short in an organization like ICB and this was the main limitation of my Internship Program.
Other constraints that I faced during the course of my internship are as follows:
Official secrecy of ICB was also a problem to me.
At the time of face to face discussion with officials, there were no sufficient chairs and tables.
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been managing one Unit Fund. Returns on these Funds had been quite encouraging. In chapter two of this report I have tried to give a brief overview of ICB. Chapter three contains theoretical aspects of different types of mutual funds. Chapter four contains description about ICB Mutual Funds. In chapter five I have tried to measure the performance of ICB Mutual Funds from the year 2004-05 to the year 2008-09. Chapter six contains Multiple Regression Analysis of ICB Mutual Funds. In chapter seven I have done SWOT analysis of ICB and identified the problems of ICB. In order to overcome those problems a few recommendations for the development of ICB have been suggested in chapter eight.
The striking condition in most of the underdeveloped world including Bangladesh is the large availability of local on the one hand and relatively small use of such capital in industry on the other hand. Much of the privately owned capital is either invested in non-productive sector or has gone to safe haven in foreign countries. Large amounts of capital have also been found in the pension funds and in the reserve of insurance companies. These funds if channeled into industry, the problem of financing industrialization would be solved to a great extent. Thus, application of a sound policy regime and development of some of the financial institutions such as investment finance companies, stock exchange, mutual fund etc. are crucial in mobilizing capital for industrial finance as well as development of capital market. The popularity of ICB as an alternative source of finance and the ability to fulfill the capital requirement of entrepreneurs has inspired me to work on ICB.
1.1: Origin of the Report
Internship means receiving practical training through attending particular work physically. Practically training means a way through which a person or a trainee can gather experience about the related subjects and be able to apply his or her theoretical experience in the field of real life action. Practical training is necessary to achieve complete knowledge about some thing. Internship program is actually a form of practical training.
As a student of MBA, major in Finance, internship is an academic requirement. For doing internship every student is required to work in a selected institution to enhance ones practical knowledge and experiences.
For my internship I worked on the Investment Corporation of Bangladesh (ICB), under the supervision of our respectable teacher Dr. Jamal Uddin Ahmed. My supervisor asked me to prepare a report on "Performance Evaluation of ICB Mutual Funds ".
1.2: Scope of the report
Undergoing the internship with ICB, the main scope of mine was committed to the functions laid by ICB and management process of ICB Mutual Fund and their performance. ICB is a large organization and giving a range of services to the nation. It has 42 department and all are related to one another. So time constrain restrain me from going every details of its function. Further more my theoretical knowledge about this kaleidoscopic world is unable to go far. So the scope of the study was limited to the practical aspect of ICB in the strictest sense.
1.3: Objectives of the Study
The main objectives of this report are to identify and familiarize with the organizational objectives, functions, management and analyzed performance of Mutual Funds of ICB. Other objectives of this report are as follows:-
To focus on the overall performance of the ICB Mutual Fund.
To analyze the performance of ICB, its image and its role in the capital market of Bangladesh.
To relate our theoretical learning with the practical situation.
To learn the practical aspect of the Investment Corporation of Bangladesh.
To gather knowledge of how ICB floats and manages the Mutual Funds.
1.4: Methodology
This research work of this report is a descriptive one. The research involved both qualitative and ative analysis. The data have been collected from the following sources.
Primary data source
i) Personal Interview: This is the most effective way to collect primary data. Through this process the trainee can confront a number of officials of ICB and shareholders. I interviewed them by asking financial operation of ICB.
ii) Briefing Session: In case of corporate organization, this method is very useful. During internship period we visited different department of ICB and took part in briefing session. The head of departments gave briefs to the trainees which were very much useful for us and we gathered some valuable information from their briefing.
iii) By Observation: This process is very useful for gathering primary data. This process is very costly, time consuming. Through this process limited but accurate data can be collected.
Secondary data source
· Annual reports, memos and brochure of ICB, Mutual Funds, Unit Funds.
· Different books, journals, articles etc.
· General information about ICB.
· Monthly review of DSE, Bangladesh Bank monthly economic trend, SEC regulations etc.
· Annual reports of three subsidiary companies of ICB.
1.5: Limitations of this Study
In preparing this report I faced some limitations. During this Internship I worked all the departments of ICB one after another for eight weeks. ICB is a large autonomous corporation, but two months study time is too short in an organization like ICB and this was the main limitation of my Internship Program.
Other constraints that I faced during the course of my internship are as follows:
Official secrecy of ICB was also a problem to me.
At the time of face to face discussion with officials, there were no sufficient chairs and tables.
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