The Bangladesh Securities and Exchange Commission (BSEC) has approved the draft prospectus of Candlestone Rupali Bank Growth Fund, an open-end mutual fund.
The approval was granted on Wednesday at the 748th commission meeting, said a press release.
The investment corporation of Bangladesh (ICB) is the trustee and Brac bank is the custodian of the fund.
CandleStone Investments Partner Limited is the sponsor and asset manager of the mutual fund.
According to BSEC, the primary target size of the fund is Tk100 crore.
Of that, the sponsor will provide Tk15 crore and the rest Tk85 crore will be collected by selling units of the mutual fund to investors at a face value of Tk10 each.
Typically, the asset management firm will focus on mid and large-cap stocks, while capital protection will get high priority.
Open-end mutual funds have no mandatory endpoint, and according to current regulations, its units are not listed with the stock exchanges.
Therefore, investors buy and sell open-end fund units based on current asset value from the asset manager's office or through authorised agents.