Muhammad Ayub Ali :
The Bangladesh Securities and Exchange Commission (BSEC) has recently approved an open-ended mutual fund worth Tk 100 crore, while another Tk 105 crore is currently in the pipeline awaiting for approval.
Market insiders believe these approvals will help create a slightly positive sentiment among investors, particularly at a time when the capital market is struggling with a prolonged liquidity crisis and declining investor confidence.
According to BSEC data, a total of four open-ended mutual funds have received regulatory approval between 1 July 2024 and 28 August 2025.
Lankabangla Fixed Income Fund, managed by Lankabangla Asset Management Company Limited, has secured approval, along with the Sandhani AML SLFE Shariah Fund, the Midland Bank Growth Fund, and the Midland Bank Balance Fund. Together, these funds account for the Tk 100 crore investment approvals.
In addition, BSEC has granted prospectus approval to several other funds, including the Invest Growth Fund and the Venture AMCL Balance Fund.
Meanwhile, a number of funds remain in the approval process, with a combined value of Tk 55 crore. These include the Blue Wealth First Stable Return Fund and the Green Delta Dragon Stable Income Fund, which are expected to receive regulatory clearance soon.
Saiful Islam, President of the DSE Brokers Association of Bangladesh (DBA), told The New Nation that the country’s stock market had been facing prolonged stagnation due to a lack of fresh investments. He stressed that the injection of new funds is essential for reviving market momentum and restoring investor confidence.
The market has remained stagnant for long largely because no significant new investments have been made. This situation has kept trading activity subdued and limited the market’s growth potential,” Islam observed.
He further expressed optimism that the post-election period could mark a turning point for the capital market. “After the national election, we expect many investors both institutional and individual-to enter the market with renewed confidence and robust investments.
Market analysts say that while the amount is relatively small compared to the overall size of the stock market, the fresh approvals are nonetheless significant as they provide alternative investment options for investors and may gradually restore confidence in the sector.
The expansion of mutual funds also signals an effort to diversify the investment landscape, reduce reliance on direct stock trading, and ensure more stability in the financial market.
Waqar Ahmad Choudhury, Vice President of the Association of Asset Management Companies and Mutual Funds (AAMCMF) told The New Nation that mutual funds as the “lifeline of the stock market,” pointing out that in many developed and emerging economies, mutual funds play a stabilizing role by channeling investments from a broad base of small and institutional investors into the market in a structured and disciplined way.
However, he expressed deep concern over the current state of Bangladesh’s investment landscape, noting that the level of mutual fund investment in the stock market remains alarmingly low compared to the size and potential of the national economy.
“It is very unfortunate that, despite having a growing economy, our mutual fund industry has not been able to attract adequate investment. This weakness is leaving the stock market vulnerable and limiting its capacity to mature,” he observed.
