Mutual funds in Bangladesh have emerged as an increasingly popular investment choice for both individual and institutional investors. With a mix of equity, fixed income, and Shariah-compliant options, these funds offer diversified opportunities to generate stable returns. Whether you’re an experienced investor or just starting, understanding the top-performing mutual funds can help you make informed decisions. Below is an in-depth review of the top 10 mutual funds currently delivering strong results in the Bangladeshi market.
List of Top Performing Mutual Funds in Bangladesh
- EDGE High-Quality Income Fund
- Ekush Growth Fund
- Green Delta Dragon Enhanced Bluechip Growth Fund
- ICB AMCL Pension Holders’ Unit Fund
- Ekush First Unit Fund
- Bangladesh Fund (ICB Asset Management)
- Second ICB Unit Fund
- CAPM Unit Fund
- Seventh ICB Unit Fund
- HFAML Shariah Unit Fund
1. EDGE High-Quality Income Fund
The EDGE High-Quality Income Fund is a top choice for conservative investors seeking steady income. Launched in February 2022, this fund focuses on fixed-income instruments like government bonds and high-grade corporate bonds. It has consistently delivered an annualized return of around 6.19%, making it a reliable option during times of market volatility. What sets this fund apart is its ability to preserve capital while generating income, a feature that attracts investors with a low-risk tolerance. Keeping a conservative portfolio with limited exposure to equities, it minimizes risks while still delivering a return that beats inflation, which is a significant advantage in an emerging market like Bangladesh.
2. Ekush Growth Fund
Ekush Growth Fund, managed by Ekush Wealth Management, is another high-performing mutual fund, offering an annualized return of 9.40%. This fund primarily invests in equities, focusing on growth stocks across various sectors. Its diversified portfolio, which includes investments in sectors like telecommunications, pharmaceuticals, and consumer goods, has enabled it to outperform many of its peers. What makes this fund particularly appealing is its balanced approach between high-growth stocks and established companies, which gives investors exposure to both market leaders and emerging opportunities. This fund is ideal for investors with a higher risk tolerance who are looking to maximize long-term capital appreciation.
3. Green Delta Dragon Enhanced Bluechip Growth Fund
As its name suggests, the Green Delta Dragon Enhanced Bluechip Growth Fund focuses on blue-chip stocks—large, established companies with a history of solid performance. Offering a return of 8.80%, this fund targets investors who want exposure to top-tier companies in Bangladesh. The fund includes major investments in sectors like pharmaceuticals, telecommunications, and financial services. By investing in well-established companies like Grameenphone and Square Pharmaceuticals, this fund offers a blend of growth and stability. Investors in this fund benefit from relatively lower volatility compared to other equity-focused mutual funds, making it a solid choice for those seeking both growth and peace of mind.
4. ICB AMCL Pension Holders’ Unit Fund
The ICB AMCL Pension Holders’ Unit Fund is tailored specifically for long-term, pension-focused investors. With a return rate of 6.00%, it aims to provide steady, reliable income over an extended period. This fund is particularly popular among retirees and those approaching retirement, as it focuses on lower-risk investments like government bonds and high-quality corporate debt. The conservative nature of this fund ensures that the principal investment is protected while generating a modest, yet stable return. Its allocation in government-backed securities also makes it a safe bet for those looking to preserve wealth.
5. Ekush First Unit Fund
Another strong contender from Ekush Wealth Management, the Ekush First Unit Fund offers a balanced investment strategy. With an annualized return of 7.60%, it invests in both equities and fixed-income securities. The fund’s mixed portfolio helps mitigate risk, making it suitable for moderate-risk investors looking for both capital appreciation and income. The fund’s ability to balance risk and reward through diversified investments in multiple sectors, including infrastructure, healthcare, and technology, has made it a consistent performer. Its balanced approach ensures that investors are not overly exposed to any single sector, thereby reducing the risk associated with market downturns.
6. Bangladesh Fund (ICB Asset Management)
The Bangladesh Fund, managed by ICB Asset Management, is one of the country’s most established mutual funds. With a return of 4.70%, it focuses primarily on large-cap equity investments. The fund has significant holdings in well-known companies like British American Tobacco Bangladesh and Square Pharmaceuticals, which are considered pillars of the Bangladeshi economy. The Bangladesh Fund is particularly appealing to investors looking for long-term capital appreciation with moderate risk. Its consistent dividend payouts and focus on stable, high-growth sectors have made it a go-to option for investors seeking steady returns over the long term.
7. Second ICB Unit Fund
The Second ICB Unit Fund stands out for its impressive return rate of 12.00%. This fund provides a diversified portfolio of equities and fixed-income securities, offering both income and capital appreciation. It invests in high-quality companies in sectors like telecommunications, financial services, and energy, giving it broad exposure to the Bangladeshi economy. This fund is ideal for those who want a balanced investment approach but are looking for higher returns than typical fixed-income funds can offer.
8. CAPM Unit Fund
Managed by Capital and Asset Portfolio Management, the CAPM Unit Fund has consistently delivered strong returns over the past few years, with an average annual return of 14.95% over the last five years. This fund is known for its diversified portfolio, which includes investments in stocks, bonds, and other financial instruments. The fund’s managers have shown a keen ability to identify growth opportunities in both established and emerging sectors, making it a top choice for long-term investors. Its consistent performance has earned it a strong reputation in Bangladesh’s mutual fund industry.
9. Seventh ICB Unit Fund
The Seventh ICB Unit Fund focuses on providing a balanced mix of income and capital growth, offering an annual return of 10.00%. This fund invests in both equities and fixed-income instruments, with a focus on stability and moderate growth. It is suitable for investors who are looking for a more conservative approach but still want exposure to the growth potential of equities. Its diversified portfolio includes holdings in sectors like financial services, healthcare, and telecommunications, offering broad exposure to key areas of the economy.
10. HFAML Shariah Unit Fund
For those seeking Shariah-compliant investment options, the HFAML Shariah Unit Fund is an excellent choice. With a return of 4.70%, it follows Islamic investment principles, which exclude industries like alcohol, gambling, and pork. This fund is popular among investors who want to align their financial goals with their ethical and religious beliefs. It invests primarily in Shariah-compliant stocks, providing a balanced approach between income generation and capital appreciation. The fund’s ethical guidelines and solid performance make it a standout option for socially responsible investors.
Conclusion
The mutual fund industry in Bangladesh is maturing, offering a variety of investment options to cater to different risk appetites and financial goals. From conservative, income-focused funds to high-growth equity options, the top 10 mutual funds listed here offer something for every type of investor. Whether you’re seeking steady income or long-term capital appreciation, these funds provide diversified opportunities to grow your wealth. Always consider your financial objectives, risk tolerance, and investment horizon before making a decision, and consult with a financial advisor for personalized advice.
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