Bangladesh Securities and Exchange Commission (BSEC) has recently approved the draft prospectus of Shahjalal Asset Management Ltd (SAML) Income Unit Fund, an open-end mutual fund.
The approval was granted on Wednesday at the 742nd commission meeting, said a press release.
SAML will be the sponsor and asset manager of the mutual fund, Sandhani Life Insurance Company Ltd, the trustee, while Brac Bank will be the custodian.
A senior officer of SAML told The Business Standard that the fund will be invested in sectors and companies with growth potential.
Typically, the asset management firm will focus on mid and large-cap stocks, while capital protection will get high priority.
"We think this fund will enable investors to leverage Bangladesh's next growth trajectory," said the investment professional.
According to BSEC, the primary target size of the fund is Tk10 crore. Of that, the sponsor will provide Tk1 crore and the rest will be collected by selling units of the mutual fund to investors at a face value of Tk10 each.
Open-end mutual funds have no mandatory endpoint, and according to current regulations, its units are not listed with 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.