All FAQs

What is mutual fund?

Mutual fund is a professionally managed investment vehicle that pools money from many investors to invest in securities such as stocks, bonds, money market instruments and similar assets across a wide range of industries and sectors. Mutual funds are managed by professional asset managers to attain the investment objectives of the investors of the fund.

What are the different types of mutual funds?

Open-end Mutual Fund: A type of mutual fund that does not have a maturity period so investors can buy and sell units through the asset manager on a continuous basis. There are also no restrictions on the amount of shares the fund can issue.

Close-end Mutual Fund: A type of mutual fund that has a fixed maturity period and issues a fixed number of shares during a certain period at the time of launch. Investors can invest in the fund at the time of the IPO and thereafter, they can only buy and sell units in the capital market.

What are the common benefits of investing in a mutual fund?

There is no guaranteed percentage of return. Empirically, it has been observed that mutual funds can generate higher return than all other asset classes in the long run.

What do you mean by expert fund manager?

An expert fund manager is a skilled professional capable of generating better returns and managing risks through dynamic asset allocation.

Sponsor: The sponsor initiates the mutual fund by subscribing minimum 10% of the total fund size. The Sponsor appoints the Trustee, Custodian and the Asset Management Company.

Trustees: The board of trustees are responsible for protecting the interests of the unit holders. It is an independent body having received the trusteeship license from the regulator and is not associated with the Sponsor or the Asset Management Company.

Custodian: The custodian is responsible for physical handling and safe keeping of the assets managed by the Asset Management Company. They receive the Custodian license from the regulator and are independent of the Sponsor or the Asset Management Company.

Asset Management Company (AMC): The Asset Management Company is responsible for floating and managing the mutual funds in accordance with Bangladesh Securities and Exchange Commission regulations and guidelines provided by the Trustee.

What is Net Asset Value (NAV)?

Net Asset Value (NAV) is defined as the market value of all assets in the fund less liabilities. NAV is generally declared on per unit basis, dividing the total Net Asset Value by the outstanding number of units of the fund. NAV is published on a weekly basis (every Sunday) on our website:



What are units?

Shares which represent the extent of ownership in a mutual fund is called a unit. Investors can purchase or redeem units at the fund’s current Net Asset Value (NAV) per share.

How often will the NAV of mutual funds of CWTAMC be declared?

The NAV of all mutual funds of CWTAMC is declared on Sunday every week on our website and The Bonik Barta newspaper.

How do mutual funds work?

What AMCs do is that they collect money from investors sharing a common investment objective and invest this pool of funds across the economy. This pool of funds invested on behalf of the investors is referred to as a mutual fund. Mutual fund investors are allotted units with the investment amount and depending on the fund’s existing NAV. The performance of a mutual fund depends on the performance of its underlying assets.

How to invest in mutual funds?

One can invest in mutual funds both online and offline. An individual has to be KYC compliant in order to invest in mutual funds. One can make a lumpsum investment or start a mutual fund SIP and invest at regular intervals through that savings account.

What is Systematic Investment Plan (SIP)?

Systematic Investment Plan or SIP allows investors to invest a certain pre-determined amount at a regular interval (monthly, quarterly, yearly etc.). A SIP is a planned approach towards investments and helps to cultivate the habit of saving and building wealth for the future. Investors can start SIP with a very small amount that is minimum BDT 1,000 (One Thousand).