Internship Report on Performance Analysis of ICB Mutual Funds

In the current world for developing a country it is most important to develop strong capital market. A sound Capital Market ensures greater mobilization of domestic savings and also ensures broadening the base of industrial ownership. The sound Capital Market also assists the entrepreneurs whether in the private or public sector to acquire capital for a feasible project. The importance of sound Capital Market need not over emphasized as it contributes to the real economic growth of a country. The speedy Development of industrial activities in the country needs the support of a balanced and efficient Capital Market. 
In this connection ICB is playing an important role from the very beginning to make the market stable and liquid. The activities of ICB are pivotal to the Development of the Capital Market in Bangladesh, which is crucial for the sake of accelerating the pace of industrial Development. The underwriting or bridge financing operation of ICB enables implementation of industrial projects by ensuring a part of equity finance. 
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. 
The activities related to merchant banking, mutual fund operation and stock brokerage activities in these subsidiary companies, namely ICB Asset Management Company Limited, ICB Capital Management Company Limited and ICB Securities Trading Company Limited are increasing day by day. So these three subsidiary companies are also playing an important role in the capital market.

Bangladesh is one of the least developed countries in the world with minimum natural and financial resources. The development of Bangladesh is being hindered due to lack of insufficient capital. To accelerate the phase of industrialization through the development of capital market and broadening the base of investment, 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

Specific objectives of this report are as follows:
¨ To compute the return and risk of mutual funds
¨ To know how ICB floats and manage the Mutual Funds.
¨ To measure the performance of the mutual funds.
¨ To explore the problems of ICB.
. To give suggestion to overcome the problem.

Main aim of this report is to gain experience so I observed various departments and gathered relevant information. Before conducting the study, the topic of study was selected. To conduct the study various methods, technique and tools are used. 

The necessary data were collected from two sources. They are-
Primary sources:
Primary sources of data mean those which were collected from the direct field. I worked two months in ICB and discussed with the personnel of department in-charge. They provided me different data related to the Problems of operations and management of ICB mutual funds


Secondary sources:
The secondary data has been collected from articles, Annual reports of ICB, Annual report of ICB Asset Management Company Limited, Annual report of ICB Capital Management Company Limited, Annual report of ICB Security Trading Company Limited. Annual reports of ICB Mutual Fund, Annual report of ICB Unit fund, Manuals of ICB, Various journals, books and websites.

Scope of the study:
Since I was placed in the ICB and I worked in the head office, I gave more concentration on various important operations. The study was confined only into the head office and given more concentration on it. The empirical part included only the published information and current practices of Investment Corporation of Bangladesh (ICB).

 Limitations:
I have relied upon certain assumptions, which are only amateur estimates. As many of the analysis on the obtained data are based on my sole interpretation, there may be some biases, as lack of knowledge and depth of understanding might have hindered my ability to produce an absolutely authentic and meaningful report.
In preparing this report I have faced a little limitation. During this Internship Report I have worked all the departments of ICB one after another. So in this corporation part I mainly connection of the functions of all departments. ICB is a large corporation, but study time two months is too short on an organization like ICB and this was the main limitations of my Internship Program. 

Other constraints I faced during the course of my study are as follows: 
¨ An official interview and assumptions to some areas may confined the report and impede me in writing this report.
¨ Entrance to every nook and corner of the corporation was not possible for me.
¨ Official’s secrecy of ICB was also a problem to me.
¨ Relevant papers and documents were not available sufficiently.
¨ At the time of face to face discussion with officials, there were no sufficient chairs and tables
¨ Our capital market is not so strong and mature so the various financial analyses can not be applied to judge the performance of the subsidiaries of ICB.