Evaluation of Portfolio Performance of the Investment Corporation of Bangladeshas Mutual Funds

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Abu Bakar Seddeke
Abu Bakar Seddeke
2
Mahbubur Rahman
Mahbubur Rahman

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GJMBR Volume 16 Issue C6

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The number of mutual funds that were professionally managed is on the rise. Consequently, the importance of evaluating the performance of mutual funds has also increased. Investors prefer investing in such stocks that have performed better compared to other alternatives since investors always like to choose fund managers on a comparative basis. This study has endeavoured to address this issue by measuring the performance of mutual funds managed by ICB (Investment Corporation of Bangladesh) through Treynor Index, Sharpe Index, Jensen Alpha, and Fama Decomposition. This study has found that the performance of ICB mutual funds is satisfactory in the context of mutual funds sector of Bangladesh. However, there remain several shortcomings in managing the portfolios by the portfolio managers of ICB. Much of the underperformance of ICB mutual funds is attributable to the bureaucratic systems and structural rigidity of ICB.

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No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Not applicable for this article.

Abu Bakar Seddeke. 2016. \u201cEvaluation of Portfolio Performance of the Investment Corporation of Bangladeshas Mutual Funds\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 16 (GJMBR Volume 16 Issue C6): .

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GJMBR Volume 16 Issue C6
Pg. 35- 43
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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-C Classification: JEL Code: G39 –
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June 14, 2016

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English

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The number of mutual funds that were professionally managed is on the rise. Consequently, the importance of evaluating the performance of mutual funds has also increased. Investors prefer investing in such stocks that have performed better compared to other alternatives since investors always like to choose fund managers on a comparative basis. This study has endeavoured to address this issue by measuring the performance of mutual funds managed by ICB (Investment Corporation of Bangladesh) through Treynor Index, Sharpe Index, Jensen Alpha, and Fama Decomposition. This study has found that the performance of ICB mutual funds is satisfactory in the context of mutual funds sector of Bangladesh. However, there remain several shortcomings in managing the portfolios by the portfolio managers of ICB. Much of the underperformance of ICB mutual funds is attributable to the bureaucratic systems and structural rigidity of ICB.

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Evaluation of Portfolio Performance of the Investment Corporation of Bangladeshas Mutual Funds

Abu Bakar Seddeke
Abu Bakar Seddeke
Mahbubur Rahman
Mahbubur Rahman

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