Bangladesh Securities and Exchange Commission (BSEC) has approved the prospectus of open-ended mutual funds named Mercantile Bank Unit Fund.

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.

Primary target of the fund is Tk 50 crore where Mercantile Bank provided Tk 5 crore as sponsor and rest Tk 45 crore can be sold to general investors. Unit price of the fund is Tk 10.

Yesterday, the BSEC approved the fund in a commission meeting. Asset manager of the mutual fund is MBL Asset Management. Trustee and custodian of the fund is ICB Capital Management and Brac Bank respectively.