Two open-ended mutual funds get approval

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The stock market regulator approved two open-ended mutual funds named Bangladesh Race Management Private Fund and HFAML Shariah Unit Fund.

The targeted fund size of both mutual funds is Tk 25 crore each. Of the fund, Tk 2.5 crore would be sponsored by Bangladesh Race Management and HF Asset Management Ltd.

Rest of the funds can be subscribed by general investors. The face value of the funds is Tk 10.

Mutual funds are investment funds that gather a fixed pool of money from several investors and re-invest them into stocks, bonds and other securities and then distribute the profits among the unitholders.

Open-ended mutual funds have no timeframe to mature and are not listed with the bourses.

The asset management company of HFAML Shariah Unit Fund is HF Asset Management, trustee of the fund is Investment Corporation of Bangladesh.

Asset Management of Bangladesh Race Management Private Fund is Bangladesh Race Management Private Fund Company.