The fund’s primary target size is Tk50 crore

The Bangladesh Securities and Exchange Commission (BSEC) recently approved the draft prospectus of Mercantile Bank Unit Fund - an open-ended mutual fund.

ICB Capital Management is the trustee, Brac Bank is the custodian, and MBL Asset Management Ltd is the asset manager of the fund.

The asset manager will focus on mid and large-cap stocks while giving the highest priority to capital protection.

According to BSEC, the fund's primary target size is Tk50 crore.

Of the amount, the sponsor will provide Tk5 crore, and the remaining Tk45 crore will be collected by selling the mutual fund's units to investors at a face value of Tk10 each.

Open-ended mutual funds have no mandatory endpoint, and according to current regulations, their units are not listed with the stock exchanges.

Therefore, investors buy and sell open-ended fund units based on current asset value from the asset manager's office or through authorised agents.

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