Ratio and Graphical Analysis of ICB Mutual Funds:

Mutual Fund department is appreciably innovative, explorative and dynamic. ICB should specially continue the operations and management of mutual fund because most of the small investors are key clients of mutual fund. But still, Mutual Funds are not above the shortcomings. So, ICB should concentrate to increase the performance of its mutual fund and way to find out the path for overcoming the problems of operations.

Current Ratio:

First ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Current Ratio CR= Current Assets/Current Liabilities 119264681÷35000563=3.41:1 114046205÷48864978=2.33:1

Interpretation: The standard ratio in this case is 2:1. The actual ratio for the fiscal year 2008-09 is 2.33:1 which is above of standard. In this case the current asset of ICB compared to current liabilities is sufficient. Again the actual ratio for the fiscal year 2009-10 is 3.41:1 which is above of the standard. Here the current asset of ICB compared to current liability is satisfactory.

Second ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Current Ratio Current Ratio= current assets/current liabilities 77171415÷45511592= 1.70 : 1 79292638÷55625608= 1.43 : 1

Interpretation: Standard ratio in this case 2:1. The actual ration for the fiscal year 2008-09 is 1.43:1 which is below of standard. In this case the current asset of ICB compared to current liability is not sufficient. Again the actual ratio for the fiscal year 2009-10 is 1.99:1 which is same to the standard. Here the current asset of ICB compared to current liability is satisfactory.

Third ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Current Ratio Current Ratio= Current assets/ current liabilities 94328785÷46252816=2.04 : 1 86105151÷47966901=1.78 : 1

Interpretation: Standard ratio in this case is 2:1. The actual ratio for the fiscal year 2008-09 is 1.78:1 which is below of standard. In this case the current asset of ICB compared to current liability is not sufficient. Again the actual ratio for the fiscal year 2009-10 is 2.04:1 which is above of the standard. Here the current asset of ICB compared to current liability is satisfactory.

Fourth ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Current Ratio Current Ratio= Current assets/ current liabilities 107587626÷59856216=1.80 : 1 95305253÷57346111=1.66 : 1

Interpretation: Standard ratio in this case is 2:1. The actual ratio for the fiscal year 2008-09 is 1.80:1 which is below of standard. In this case the current asset of ICB compared to current liability is not sufficient. Again the actual ratio for the fiscal year 2009-10 is 1.66:1 which is also below of the standard. Here the current asset of ICB compared to current liability is not satisfactory.

Fifth ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Current Ratio Current Ratio= Current assets/ current liabilities 145761261÷96235506=1.51 : 1 115814955÷79240948=1.46 : 1

Interpretation: Standard ratio in this case is 2:1. The actual ratio for the fiscal year 2008-09 is 1.46:1 which is below of standard. In this case the current asset of ICB compared to current liability is not sufficient. Again the actual ratio for the fiscal year 2009-10 is 1.51:1 which is also below of the standard. Here the current asset of ICB compared to current liability is not satisfactory.

Sixth ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Current Ratio Current Ratio= Current assets/ current liabilities 192517973÷74248077=2.59 : 1 160752686÷69316209=2.32 : 1

Interpretation: Standard ratio in this case is 2:1. The actual ratio for the fiscal year 2008-09 is 2.32:1 which is above of standard. In this case the current asset of ICB compared to current liability is sufficient. Again the actual ratio for the fiscal year 2009-10 is 2.59:1 which is also above of the standard. Here the current asset of ICB compared to current liability is satisfactory.

Seventh ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Current Ratio Current Ratio= Current assets/ current liabilities 209113978÷132366503=1.58 : 1 166670477÷109384891=1.52 : 1

Interpretation: Standard ratio in this case is 2:1. The actual ratio for the fiscal year 2008-09 is 1.52:1 which is below of standard. In this case the current asset of ICB compared to current liability is not sufficient. Again the actual ratio for the fiscal year 2009-10 is 1.58:1 which is also below of the standard. Here the current asset of ICB compared to current liability is not satisfactory.

Eighth ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Current Ratio Current Ratio= Current assets/ current liabilities 243425003÷124838239=1.95 : 1 189741743÷101518623=1.87 : 1

Interpretation: Standard ratio in this case is 2:1. The actual ratio for the fiscal year 2008-09 is 1.87:1 which is below of standard. In this case the current asset of ICB compared to current liability is not sufficient. Again the actual ratio for the fiscal year 2009-10 is 1.95:1 which is also below of the standard but it is more near from the standard level. Here the current asset of ICB compared to current liability is better but not satisfactory.

Earning Per Share:

First ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Earning Per Share (EPS) EPS= Net Income/ No. of shares held 42332887÷75000= 564.44 28893206÷75000= 385.24

Interpretation: Here we can sassily notice trend of earnings per share of ICB which is an indication of successful management of the fund, to retain the position and it is a bit higher.

Second ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 EPS EPS= Net income/ No. of share held 12742793÷50000= 254.86 6777374÷50000= 135.55

Interpretation: Here we can easily notice increasing trend of earnings per share of ICB which is an indication of successful management of the fund.

Third ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 EPS EPS= Net Income/No. of share held 18437719÷100000=184.38 12139709÷100000=121.40

Interpretation: Here we can easily notice an increasing trend of earnings per share of ICB which is an indication of successful management of the fund.

Fourth ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 EPS EPS= Net Income/No. of share held 17772268÷100000=177.72 1142758÷100000=114.28

Interpretation: Here we can easily notice an increasing trend of earnings per share of ICB which is an indication of successful management of the fund

Fifth ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 EPS EPS= Net Income/No. of share held 21351749÷150000=142.34 11784142÷150000=78.56

Interpretation: Here we can easily notice an increasing trend of earnings per share of ICB which is an indication of successful management of the fund.

Sixth ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 EPS EPS= Net Income/No. of share held 45333419÷500000=90.67 24999936÷500000=50.00

Interpretation: Here we can easily notice an increasing trend of earnings per share of ICB which is an indication of successful management of the fund.

Seventh ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 EPS EPS= Net Income/No. of share held 29961888÷300000=99.87 14999581÷300000=50.00

Interpretation: Here we can easily notice an increasing trend of earnings per share of ICB which is an indication of successful management of the fund.

Eighth ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 EPS EPS= Net Income/No. of share held 46363644÷500000=92.73 21423580÷500000=42.85

Interpretation: Here we can easily notice an increasing trend of earnings per share of ICB which is an indication of successful management of the fund.

Earning Per Share:

 Year 1st 2nd 3rd 4th 5th 6th 7th 8th 2009-10 564.44 254.86 184.38 177.72 142.34 90.67 99.87 92.73 2008-09 385.24 135.55 121.40 114.28 78.56 50.00 50.00 42.85

EPS means Earning per Share. So, maximum earn from per share shows the maximum profit and company’s growth is well.

Here we see that, EPS is increases in 2009-10 from previous year of 2008-09. It is a good sign for a company. And here most EPS comes from 1st ICB Mutual Fund.

Price Earning Ratio:

First ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Price Earning Ratio PE=Market Price/EPS 8701÷564.44= 15.42 5783÷385.24= 15.01

Interpretation: Price Earning Ratio gives the idea of what the market is willing to pay for the company’s earning. Higher PE indicates the higher risk. Here we see that in year 2009-10 PE is 15.42 it is more than for the year of 2008-09 15.01. It’s not a better for investors.

Second ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Price Earning Ratio PE=Market Price/EPS 2578.75÷254.86= 10.12 2244.75÷135.55=16.56

Interpretation: Price Earning Ratio gives the idea of what the market is willing to pay for the company’s earning. Higher PE indicates the higher risk. Here we see that in year 2009-10 PE is 10.12, it is less than for the year of 2008-09 16.56. It’s a better for investors.

Third ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Price Earning Ratio PE=Market Price/EPS 1972.50÷186.38=10.58 1259.50÷121.40=10.37

Interpretation: Price Earning Ratio gives the idea of what the market is willing to pay for the company’s earning. Higher PE indicates the higher risk. Here we see that in year 2009-10 PE is 10.58, it is some more than for the year of 2008-09 10.37. It’s not a better for investors.

Fourth ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Price Earning Ratio PE=Market Price/EPS 2139.75÷177.72=12.04 1236.25÷114.28=10.82

Interpretation: Price Earning Ratio gives the idea of what the market is willing to pay for the company’s earning. Higher PE indicates the higher risk. Here we see that in year 2009-10 PE is 12.04, it is more than for the year of 2008-09 10.82. It’s not a better for investors.

Fifth ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Price Earning Ratio PE=Market Price/EPS 1763÷142.34= 12.39 1230÷78.56= 15.66

Interpretation: Price Earning Ratio gives the idea of what the market is willing to pay for the company’s earning. Higher PE indicates the higher risk. Here we see that in year 2009-10 PE is 12.39, it is more than for the year of 2008-09 15.66. It’s better for investors.

Sixth ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Price Earning Ratio PE=Market Price/EPS 647.75÷90.67= 7.14 679.25÷50= 13.59

Interpretation: Price Earning Ratio gives the idea of what the market is willing to pay for the company’s earning. Higher PE indicates the higher risk. Here we see that in year 2009-10 PE is 7.14, it is more than for the year of 2008-09 13.59. It’s better for investors.

Seventh ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Price Earning Ratio PE=Market Price/EPS 1063÷99.87= 10.64 892.50÷50= 17.85

Interpretation: Price Earning Ratio gives the idea of what the market is willing to pay for the company’s earning. Higher PE indicates the higher risk. Here we see that in year 2009-10 PE is 10.64, it is more than for the year of 2008-09 17.85. It’s better for investors.

Eighth ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Price Earning Ratio PE=Market Price/EPS 755.50÷92.73= 8.15 632.75÷42.85= 14.77

Interpretation: Price Earning Ratio gives the idea of what the market is willing to pay for the company’s earning. Higher PE indicates the higher risk. Here we see that in year 2009-10 PE is 8.15, it is more than for the year of 2008-09 14.77. It’s better for investors.

Price Earning Ratio:

 Year 1st 2nd 3rd 4th 5th 6th 7th 8th 2009-10 15.42 10.12 10.58 12.04 12.39 7.14 10.64 8.15 2008-09 15.01 16.56 10.37 10.82 15.66 13.59 17.85 14.77

Here we see that, some PE ratios are flow down and some are flow up. PE ratio gives an idea of what the market is willing to pay for the company’s earnings. Lower PE ratio indicates the lower risk for investors. And higher ratio not better for investors. Most of the ICB Mutual Fund’s PE ratio goes down. That means investors are less willing to pay for the mutual funds.

Capital Gain on Investment:

First ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Capital gain of investment Capital gain of investment= Capital gain/Total investment *100 37565167÷88770795*100= 42.38% 24346125÷58028689*100=  42%

Interpretation: Capital gain on investment means gain from the sale of investment. Here we can see an increasing trend of rate of capital gain which indicated growing demand of fund in the market.

Second ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Capital gain on Investment Capital gain on investment= Capital gain/Total investment*100 24765105÷61297649*100= 40.40% 14850124÷43719169*100= 33.97%

Interpretation: Capital gain on investment means gain from the sale of investment. Here we can see an increasing trend of rate of capital gain which indicates growing demand of fund in the market.

Third ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Capital gain on Investment Capital gain on investment= Capital gain/Total investment*100 26102001÷69825467*100= 7.38% 20512814÷72145974*100= 28.43%

Interpretation: Capital gain on investment means gain from the sale of investment. Here we can see an increasing trend of rate of capital gain which indicates growing demand of fund in the market.

Fourth ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Capital gain on Investment Capital gain on investment= Capital gain/Total investment*100 33980324÷74851794*100= 45.40% 26047694÷79252866*100= 32.87%

Interpretation: Capital gain on investment means gain from the sale of investment. Here we can see an increasing trend of rate of capital gain which indicates growing demand of fund in the market.

Fifth ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Capital gain on Investment Capital gain on investment= Capital gain/Total investment*100 38602780÷95261107*100= 40.52% 50282123÷100385396*100= 50.08%

Interpretation: Capital gain on investment means gain from the sale of investment. Here we can see decreasing trend of rate of capital gain which indicates decreasing demand of fund in the market.

Sixth ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Capital gain on Investment Capital gain on investment= Capital gain/Total investment*100 50122888÷122585722*100= 40.88% 45913255÷122913451*100= 37.35%

Interpretation: Capital gain on investment means gain from the sale of investment. Here we can see decreasing trend of rate of capital gain which indicates decreasing demand of fund in the market

Seventh ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Capital gain on Investment Capital gain on investment= Capital gain/Total investment*100 61787212÷1341995756*100= 46.04% 66779737÷139461880*100= 47.88%

Interpretation: Capital gain on investment means gain from the sale of investment. Here we can see decreasing trend of rate of capital gain which indicates decreasing demand of fund in the market

Eighth ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Capital gain on Investment Capital gain on investment= Capital gain/Total investment*100 67067600÷153886033*100= 43.58% 60787221÷157025973*100= 18.47%

Interpretation: Capital gain on investment means gain from the sale of investment. Here we can see increasing trend of rate of capital gain which indicates increasing demand of fund in the market.

Capital gain on investment:

 Year 1st 2nd 3rd 4th 5th 6th 7th 8th 2009-10 42.38% 40.40% 7.38% 45.40% 40.52% 40.88% 46.04% 43.58% 2008-09 42% 33.97% 28.43% 32.87% 50.08% 37.35% 47.88% 18.47%

Here we see that, the capital gain some are increases and some are decreases. If it is maximize we can say it’s good. Authority and the committee are working properly, but here we see in 3rd ICB Mutual Fund decreases the capital gain 28.43% in 2008-09 and direct fall to 7.38% in year of 2009-10. It’s a very bad sign of this sector.

Return on Investment:

First ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Return on Investment ROI= Net Income/Total investment*100 42332887÷88770795*100= 47.69% 24827105÷58028689*100= 42.78%

Interpretation: Here we see an increasing trend of return on investment which indicated successful and wise full management of the fund.

Second ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Return on Investment ROI=  Net Income/Total investment * 100 12742793÷61297649*100=

20.79%6777374÷43719169*100=

15.50%

Interpretation: Here we see a increasing trend of return on investment which indicated successful of the fund.

Third ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Return on Investment ROI=  Net Income/Total investment * 100 18437719÷69825467*100=

26.40%12139709÷72145974*100=

16.82%

Interpretation: Here we see an increasing trend of return on investment which indicated successful and wise full management of the fund.

Fourth ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Return on Investment ROI=  Net Income/Total investment * 100 17772268÷74851794*100=

23.74%11427598÷79252866*100=

14.42%

Interpretation: Here we see an increasing trend of return on investment which indicated efficient management of the fund.

Fifth ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Return on Investment ROI=  Net Income/Total investment * 100 21351749÷95261107*100=

22.41%11784142÷79252866*100=

11.74%

Interpretation: Here we see an increasing trend of return on investment which indicated efficient management of the fund.

Sixth ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Return on Investment ROI=  Net Income/Total investment * 100 45333419÷122585722*100=

36.98%24999936÷122913451*100=

20.33%

Interpretation: Here we see an increasing trend of return on investment which indicated successful and wise full management of the fund.

Seventh ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Return on Investment ROI=  Net Income/Total investment * 100 29961888÷134195756*100=

22.32%14999581÷13946188*100=

11.17%

Interpretation: Here we see an increasing trend of return on investment which indicated successful and wise full management of the fund.

Eighth ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Return on Investment ROI=  Net Income/Total investment * 100 46363644÷153886033*100=

30.12%21423580÷157025973*100=

13.64%

Interpretation: Here we see an increasing trend of return on investment which indicated successful and wise full management of the fund.

Return on investment:

 Year 1st 2nd 3rd 4th 5th 6th 7th 8th 2009-10 47.69% 20.79% 26.40% 23.74% 22.41% 36.98% 22.32% 30.12% 2008-09 42.78% 15.50% 16.82% 14.42% 11.74% 20.33% 11.17% 13.64%

Here we see that, in every mutual fund’s return on investment are increases in 2009-10 from year of 2088-09. It is a very good scenario. Every company want to maximize the return on investment.

Dividend Payout Ratio:

First ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Dividend Payout Ratio Dividend Payout Ratio=Dividend per share/Earning per share * 100 400÷564.44*100=

70.87%310÷385.24*100=

80.47%

Interpretation: Here we notice decreases of rate of paying cash dividend which indicates decreasing capability of ICB to invest fund.

Second ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Dividend Payout Ratio Dividend Payout Ratio=Dividend per share/Earning per share * 100 200÷254.86 *100= 78.47% 95÷135.55 *100=

70.08%

Interpretation: Here we notice an increasing trend of rate of paying cash dividend which indicates increasing capability of ICB to invest future

Third ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Dividend Payout Ratio Dividend Payout Ratio=Dividend per share/Earning per share * 100 140÷184.38*100= 75.93% 85÷121.40 *100=

70.00%

Interpretation: Here we notice an increasing trend of rate of paying cash dividend which indicates increasing capability of ICB to invest fund.

Fourth ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Dividend Payout Ratio Dividend Payout Ratio=Dividend per share/Earning per share * 100 125÷177.72*100= 70.34% 80÷114.28 *100=

70.00%

Interpretation: Here we notice an increasing trend of rate of paying cash dividend which indicates increases satisfaction of investor.

Fifth ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Dividend Payout Ratio Dividend Payout Ratio=Dividend per share/Earning per share * 100 100÷142.34*100= 70.25% 56÷78.56 *100=

71.28%

Interpretation: Here we notice decreasing trend of rate of paying cash dividend which indicates decreases not satisfaction of investor.

Sixth ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Dividend Payout Ratio Dividend Payout Ratio=Dividend per share/Earning per share * 100 75÷90.67*100= 82.71% 37÷50 *100=

74.00%

Interpretation: Here we notice an increasing trend of rate of paying cash dividend which indicates increases satisfaction of investor.

Seventh ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Dividend Payout Ratio Dividend Payout Ratio=Dividend per share/Earning per share * 100 70÷99.87*100= 70.09% 35÷50 *100=

70.00%

Interpretation: Here we notice an increasing trend of rate of paying cash dividend which indicates increases satisfaction of investor.

Eighth ICB Mutual Fund:

 Name of the Ratio Formula 2009-10 2008-09 Dividend Payout Ratio Dividend Payout Ratio=Dividend per share/Earning per share * 100 65÷92.73*100= 70.09% 32÷42.85 *100=

74.67%

Interpretation: Here we notice decreasing trend of rate of paying cash dividend which indicates decreases not satisfaction of investors.

Dividend payout ratio:

 Year 1st 2nd 3rd 4th 5th 6th 7th 8th 2009-10 70.87% 78.47% 75.93% 70.34% 70.25% 82.71% 70.09% 70.09% 2008-09 80.47% 70.08% 70.00% 70.00% 71.28% 74.00% 70.00% 74.67%

Here we see that, 1st, 5th and 8th ICB Mutual Fund is decreases and other Mutual Funds ration is increases. If dividend pay out ratio is increases this is indicates increasing capability of ICB to invest fund. And other hand if it’s decreases which indicates decreasing capability of ICB to invest fund.

Maximum Capital gain on a Security:

Year

Of

2009-2010 1st2nd3rd4th5th6th7th8th

SecuritiesGrameen

Phone Ltd.

Grameen

Phone Ltd.

Jamuna Oil

Co. Ltd

Jamuna Oil

Co. Ltd

Jamuna Oil

Co. Ltd

Grameen

Phone Ltd.

Sonargaon

Textiles Ltd.

United

Leasing Co. Ltd

Amount (Tk in lac)32.7424.9425.4429.2928.9939.6157.9073.29

Here we see that, maximum profit earn from an individual securities. And 8th ICB Mutual Fund earn capital gain maximum from United Leasing Co. Ltd. and the amount is Tk. 73.29 Lac.

Problem, Recommendation & Conclusion

Problem Related to the ICB Mutual Fund:

Mutual funds are managed and run by a professional management team , the success and growth of the mutual funds depend future profitability and investors confidence also depend on the management  performance .

During the internship at ICB, I have found some problems, which can affect the fund future and the confidence of the investors. There are some problems related to fund. They are as follows:

From depositor’s Point of view:

• The services provided by the related personnel are not prompt. It is taking more than required time for giving the service.
• Same laggard procedure is also taking place at the time of execution of order.
• Withdrawal of any funds of securities is also very lengthy and complicated process and inefficiently managed.

From Portfolio investment point of view:

ICB has not yet done any systematic analysis for measuring how they are doing. ICB has not identified any key variables to size up all its diversified performance.

From Capital market point of view:

• Dividend is one of the sources of income for the mutual fund. Most of the companies do not declare dividend up to satisfactory level.
• The rate of supply of fundamentally strong securities is very low.
• Political unsteady position also hearts the investor’s sentiment in the market and thereby leads to flat the stock market.
• Using costly borrowing capital for the investment on securities is another factor causing problem for high expenditure of maintenance of funds, which affects the income of fund

RECOMMENDATIONS:

Recommendations ICB Mutual Funds are suggested are on the basis of the problems. These are:

• The interest of making portfolio of proposed funds and the existing ICB unit mutual fund profitable and attractive, it is imperative to design balance portfolio of securities. As the supply of securities is not adequate, I think, the portfolio is envisaged to be designed and developed from the following sources:
• Shares of multinational companies
• Shares of public enterprises
• Primary issue of securities by companies
• Secondary market operation.

Share of public enterprises means government has been pursuing policy of divesting 49% shares of government enterprises of public subscription. In this regard govt. should reserve 30% of all new issues in all cases for ICB.

• Reserve should be kept at a minimum level; it may vary fund to fund, but not more than 25% of a fund’s income.
• Investing in costly borrowing funds should be reduced. Management may look for sources of less costly funds and reduce expenses and increase income.
• ICB should fix redemption date of each fund. I may redeem 1st, 2nd, and 3rd mutual fund. Because these funds are established for more than 15 years.
• ICB may take initiative and decision to float more funds for the stabilization of capital market and for gaining of investor’s confidence to invest in the capital market.
• ICB should reduce interest rate.
• Orders are to be executed quickly.
• Training program should be arranged for developing of management efficiency.

CONCLUSION:

ICB is a unique name in our country as an investment Bank. It is playing a pivotal role to develop the country’s capital market, ICB as the National Investment House is the organization to per from the activities by creating demand for securities and on the other hand to ensure the supply of securities in the Capital Market. ICB’s investor’s scheme helps to boost up domestic economy through facilitating to invest into the capital market. At a stage, this made an important effect on the capital market and excellent response from the investor’s/ the floatation of mutual funds and issuance of unit certificates by the ICB strengthens the activities of mutual fund.

Mutual Fund department is appreciably innovative, explorative and dynamic. ICB should specially continue the operations and management of mutual fund because most of the small investors are key clients of mutual fund. But still, Mutual Funds are not above the shortcomings. So, ICB should concentrate to increase the performance of its mutual fund and way to find out the path for overcoming the problems of operations.

We are quite optimistic that if the given recommendations of this paper are implemented then ICB mutual fund may be able to overcome its present problems and may enlarge its contribution to the rapid development of Bangladesh capital market. 