UCB gets nod for shariah-based mutual fund

The Bangladesh Securities and Exchange Commission (BSEC) has approved a shariah-based open-ended mutual fund for UCB Asset Management.

The approval of the fund, named UCB Taqwa Growth Fund, got the nod at a commission meeting yesterday.

Mutual funds pool money from investors to channel it into securities such as stocks, bonds, and other assets. Depending on the profits earned, investors are paid their share as dividends.

Open-ended mutual funds are not listed with the stock market but one can buy them from a fund managers' office on the basis of its net asset value.

Similarly, investors can sell off fund units at any time at prices based on its current net asset value.

The mutual fund's target is Tk 35 crore while around Tk 5 crore is being provided by UCB Asset Management. The rest of the fund can be raised from general investors.

With a face value of Tk 10, the fund's trustee and custodian are Sandhani Life Insurance and Brac Bank respectively.