Bangladesh Securities and Exchange Commission (BSEC) has approved the draft prospectus of LB Gratuity Opportunities Fund, an open-end mutual fund.
A press release signed by BSEC Executive Director Saifur Rahman said the approval for floating the mutual fund was decided at the 719th commission meeting on Tuesday.
LankaBangla Securities Ltd employs Gratuity Fund Trust as the sponsor of the fund, while the Investment Corporation of Bangladesh will act as trustee and custodian.
LankaBangla Asset Management Company Ltd will serve as the asset manager of the fund.
MA Faisal Mahmud, the chief investment officer of the asset management firm, told The Business Standard that the fund will be invested in sectors and companies where they will see growth opportunities.
Typically, they will focus on mid- and large-cap stocks while capital protection will get high priority.
"We think this fund will enable investors to exploit Bangladesh's next growth trajectory," said the investment professional.
BSEC informed that primary target size of the fund is Tk20 crore. Of that, the sponsor will provide Tk3 crore and the rest will be collected from investors through selling units each with Tk10 face value.
Open-end mutual funds have no mandatory endpoint, and according to current regulations, its units are not listed with stock exchanges.
Investors rather buy and sell open-end fund units based on current asset value from the asset manager's office or through authorised agents.