April 25, 2015

Sumi Azad
Lecturer in Finance,
Department of Business Administration
Stamford University Bangladesh

Subject: Submission of Internship Report.

Dear Madam,

It is my great pleasure to submit the internship report entitled A Comparative Analysis of

Financial Performance of ICBs Mutual Funds to you. As per requirement of BBA, I have
completed my report. I have tried to exert all the knowledge that I gathered through my working
with different things.

Throughout the study I have tried with the best of my ability to accommodate as much
information and relevant issues as possible and tried to follow the instructions as you have
suggested. I tried my best to make this report as much informative as possible that it will satisfy
your requirements too. I also sincerely believe that this report will serve the purpose of my
internship program in sense of corporate culture.

I am grateful to you for your guidance and kind cooperation at every step of my endeavor on this
report. I will remain deeply grateful if you kindly make some positive marking to go through the
report and evaluating my performance.

Thank you very much my honorable teacher for your kind immense co-operation without which
this internship report has not been done. I take every opportunity to express my gratitude of
indebtedness to you.

Sincerely yours,

--------------------------
Mizanur Rahman
ID No: BBA 04614328
Batch: Fin46
Department of Business Administrati
Stamford University Bangladesh.

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 Students Declaration
Internship Report

I here announce that the extensive study entitled

A Comparative Analysis of Financial Performance of ICBs Mutual Funds

(Conducted on behalf of Sumi Azad, Lecturer in Finance,
Department of Business Administration
Stamford University Bangladesh)

Prepared in Partial accomplishment of the requirements for the award of the

degree

Bachelor of Business Administration

From

STAMFORD UNIVERSITY BANGLADESH

Is my original work and not put forward for

The award of any other degree/diploma/fellowship
Or other similar term or honor.

_________________

Mizanur Rahman
ID No: BBA 04614328
Batch: Fin46
Department of Business Administration
Stamford University Bangladesh.

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 STAMFORD UNIVERSITY BANGLADESH

TO WHOM IT MAY CONCERN

This is to certify that the thesis report on A Comparative Analysis of Financial Performance
of ICBs Mutual Funds for the degree Bachelor of Business Administration (BBA) major in
Finance from Stamford University Bangladesh carried out by, Mizanur Rahman, ID No:
BBA04614328, under my supervision. No part of the internship report has been submitted for
any degree diploma, title, or recognition before.

_________________

Sumi Azad
Lecturer in Finance
Department of Business Administration
Stamford University Bangladesh

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All praises to almighty who has created me and has given me an opportunities and strength to
prepare this internship report. This report might never have been completed without the
necessary practical knowledge, assistance of many books, articles, websites, and primary data.
I express my heartiest gratitude and deepest respect to my internship advisor Sumi Azad,
Lecturer in Finance, Department of business administration, without her priceless and fathomless
supports; I would not have been able to produce this report. Because, a lot of insights and
knowledge I have put and used to the material covered to this report, I learned and gathered from
her vigorous instructions.

Particularly, I would like to acknowledge gratefully too many people who gave me some special
directions, information and advice about various aspects of mutual funds, when I went to
Investment Corporation Bangladesh (ICB) to collected information.

I also owed to my dearest parents and respectable teachers of Stamford University Bangladesh
who have given me the light of knowledge from earlier to till today and who have displayed their
helping hands to me during the studies.

Finally, special thanks are due to my family members, relatives, friends and other well wishers
for their loving encouragement and support.

Thanks to all
Mizanur Rahman

Signature

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There are many banking financial institutions and non-banking financial institutions operating in
Bangladesh. Each of them plays a vital role to better develop the financial environment of
Bangladesh. They have also created a lot of opportunities for the ICBs Mutual Funds.
Investment Corporation of Bangladesh (ICB) is a Non-banking Financial institution. It is a
Government institution. There are very few government institutions that can provide the benefits
to the government and ICB is one of them.

The first chapter of this study contains the background, Rationale of the study, Objectives,
Scope, Limitations, and Methodology of the Report. The study has reflected how ICB is
contributing to the financial market by its functions and activities. The report specially covered
the current financial performance of ICBs mutual fund. The board objective of the report is to
evaluate the comparative Analysis of Financial Performance of ICBs Mutual Funds & Specific
Objectives to evaluate the performance of different mutual funds. The scope of the report was
basically the operations and practices of Investment Corporation of Bangladesh. Methodology
the selection of ICB as the sample area of this study is presumably the demand of the time.

The second chapter of this study contains the background of ICB, Vision, Mission, Objectives,
Share Capital Ownership Pattern of ICB, Functions, Sources of Capital, Milestones of ICB,
Office and Branch office of ICB, Functions of Various Departments, Balance Sheet, Profit and
Loss Account, and Cash Flow Statement. The Investment Corporation of Bangladesh (ICB) was
established in October 1976, under the Investment Corporation of Bangladesh ordinance,
1976(No. XL of 1976). ICB was established to develop capital market to mobilize savings.
There are several 23 division & 48 departments in ICB, which are involved in Mutual Fund
Division, Administration Division, Accounts Division, Portfolio management Division.

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The third chapter of this study contains the Definition of ICBs Mutual Funds, Open-end
Mutual Fund, Close-end Mutual Fund, launching of ICB mutual funds. My main focus on this
report is ICBs mutual funds. ICB floated eight mutual funds, which are close-end mutual funds
are Investment Company has a definite target amount for the funds & cannot sell more shares
after its initial offerings. Open-end Mutual Fund the holders of the shares in fund can resell
them to the issuing mutual fund company at anytime. Total paid up capital of eight mutual funds
is Tk. 1775.00 lac.

The fourth chapter of this study contains the Mutual Funds of ICB, Portfolio Position,
Operational Results, Dividend performance; Consolidated Positions of Portfolios of ICB Mutual
Fund, Ratio Analysis, SOWT Analysis. In the developed countries like Bangladesh, mutual funds
are popular & gained confidence of not only the investors but also Government. In Bangladesh
mutual fund came through ICB in 1980. There are several Ratio Analysis Return on Assets
(ROA), Return on Equity (ROE), Net Profit Margin, Earnings per Certificate, Price Earnings
Ratio, dividend per Certificate, Equity Multiplier, and Current Ratio. Return on Assets (ROA)
decrease it is very bad sign investors. Net Profit Margin increase it is very good sign investors.
Earnings per Certificate decrease it is very bad sign investors. Price Earnings Ratio increase it is
very good sign investors.

The fifth chapter of this study contains the recommendation and conclusion of the study. The
main recommendation of the study is Reserve should be kept at a minimum level. It may vary
fund to fund but not more than 25% of a funds income. Investing by costly borrowing funds
should be reduced. Office curriculums have to be modernized.

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 Table of Contents

1 Letter of Transmittal I
2 Student Declaration II
3 Teachers Declaration III
4 Acknowledgement IV
5 Executive Summary V-VI
7 List of Graphs XI
8 List of Tables XII
Chapter 1 1-4
Introduction 1
1.1 Background of the Study 2
1.2 Rationale of the study 2
1.3 Objectives of the Report 3
1.4 Scope of the Study 3
1.5 Limitations of the Report 3
1.6 Methodology of the Report 4
Chapter 2 5-26
Overview of Investment Corporation of Bangladesh (ICB) 5
2.1 Background of ICB 6
2.2 Vision 6
2.3 Mission 6
2.4 Strategic Objectives of ICB 7-8
2.5 Share Capital Ownership Pattern 9
2.6 Objectives of ICB 9
2.7 Business Policies of ICB 10
2.8 Functions of ICB 10
2.9 Composition of the Board 11
2.10 Sources of Capital of ICB 12
2.11 Shareholding Position of ICB 13
2.12 Management of ICB 14
2.13 Share Price 14
2.14 Institutional framework 14
2.15 Milestones of ICB 15-16
2.16 Risk Management 17
2.17 Regulatory framework of ICB 17
2.18 Office and Branch office of ICB 17-18
2.19 Human Resources Department 18
2.20 Functions of various departments 19-20
2.21 Activities of subsidiary Companies 21

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2.22 Balance Sheet 22-24
2.23 Profit and Loss Account 24-25
2.24 Cash Flow Statement 25-26
Chapter 3 27-37
Overview of ICBs Mutual Fund 27
3.1 Definition of ICBs Mutual Funds 28
3.2 Types of Mutual Fund 28
3.2.1. Open-end Mutual Fund 28
3.2.2. Close-end Mutual Fund 29
3.3 Classification of Mutual Fund 29
3.3.1 Money Market fund 29
3.3.2. Equity funds 29
3.3.3. Fixed income funds 29
3.3.4. Income funds 29
3.3.5. Balanced funds 29
3.3.6 Asset-Allocation Funds 30
3.3.7. Specialized sector funds 30
3.4 Mutual fund returns 30
3.5 Advantages of Mutual Fund 30
3.6 Launching of ICB mutual funds 31
3.7 Regulatory set-up of ICB Mutual Fund 31
3.8 Mutual Fund Management 32
3.9 How to Buy or Sell Mutual Funds 32
3.10 Registration of Mutual Fund 32
3.11 Causes behind investing in Mutual Fund 33
3.12 How Mutual Funds Work 33
3.13 Contribution in Mutual Fund in Asset Management Company 34
Limited (AMCL)
3.13.1 Operational Highlights 34

3.13.2 Inclusion of two non-traditional products in the countrys stock 34

market
3.14 Corporate Governance 35
3.15 First ICB Mutual Fund 35
3.16 Second ICB Mutual Fund 35
3.17 Third ICB Mutual Fund 36
3.18 Fourth ICB Mutual Fund 36
3.19 Fifth ICB Mutual Fund 36

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3.20 Sixth ICB Mutual Fund 36
3.21 Seventh ICB Mutual Fund 37
3.22 Eight ICB Mutual Fund 37
Chapter 4 38-59
Analysis & Findings 38
4.1 Mutual Funds of ICB 39
4.2 Comparative Performance of ICB Mutual Funds 39
4.3 Portfolio Position (as on 30 June 2014) 40
4.4 Operational Results (2013-14) 40
4.5 Dividend performance (Tk. Per Certificate) 41
4.6 Consolidated Position of Portfolios of ICB Mutual Fund 41
4.7 Formula used for Evaluation 42
4.8 Ratio Analysis 43-56
4.9 SOWT Analysis of ICBs Mutual Fund 57-59
Chapter 5 60-64
Recommendations & Conclusions: 60
5.1 Recommendations 61
5.2 Conclusions 62
Bibliography 63
Abbreviations 64

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 List of Grasps:

Graph No. 2.1 Capital structure as on 30 June, 2014

Graph No. 2.2 Shareholding position as on 30 June, 2014
Graph No. 4.1 Return on Assets (ROA)
Graph No. 4.2 Return on Equity (ROE)

Graph No. 4.3 Net Profit Margin

Graph No. 4.4 Earnings per certificate

Graph No. 4.5 Return on Investment Ratio

Graph No. 4.6 Price earnings ratio

Graph No. 4.7 Dividend per certificate

Graph No. 4.8 Dividend pay-out ratio (%)

Graph No. 4.9 Dividend yield ratio (%)

Graph No. 4.10 Market price per certificate

Graph No. 4.11 Growth rate of market value (%)

Graph No. 4.12 Market value of mutual funds

Graph No. 4.13 Equity Multiplier

x
Graph No. 4.14 Current Ratio

List of Tables:

Table No. 2.1 Share Capital Ownership Pattern of ICB

Table No 2.2 Composition of the Board
Table No 2.3 Capital structure
Table No 2.4 Shareholding Position of ICB as on 30 June, 2014
Table No 2.5 Management Structure
Table No 3.1 Launching of ICB mutual funds
Table No 4.1 Comparative Performance of ICB Mutual Funds 2013-2014
(As on 30 June, 2014)
Table No 4.2 Portfolio Position (as on 30 June 2014)
Table No 4.3 Operational Results (2012-13)
Table No 4.4 Dividend performance
Table No 4.5 Consolidated Positions of Portfolios of ICB Mutual Fund
Table No 4.6 Return on Assets (ROA)
Table No: 4.7 Return on Equity (ROE)
Table No: 4.8 Net Profit Margin
Table No: 4.9 Earnings per Certificate
Table No 4.10 Return on Investment Ratio
Table No 4.11 Price Earnings Ratio
Table No 4.12 Dividend per Certificate
Table No 4.13 Dividend Pay-out Ratio (%)
Table No 4.14 Dividend Yield Ratio (%)
Table No 4.15 Market Price per certificate
Table No 4.16 Growth Rate of Market Value (%)
Table No 4.17 Market Value of Mutual Funds
Table No 4.18 Equity Multiplier
Table No 4.19 Current Ratio

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