The Securities and Exchange Commission (BSEC) wants to ensure minimum 10 per cent annual return from mutual funds investment to make those share blue chips in future.
The BSEC held a meeting with The Association of Asset Management Companies and Mutual Funds (AAMCMF) 0on October 12, 2020 to find-out strength, opportunities and weakness of Mutual Funds.
According to meeting sources, the commission started work to bring good governance in the mutual fund and make the sector run smoothly in the future. That is why every asset manager has been instructed to work with transparency.
“The BSEC wants to create a trusting environment for mutual funds like the situation remains for Fixed Deposit Receipt (FDR) at Bank. We are going to create a situation so that investors will get minimum 10 per cent return from it,” a BSEC official said.
Apart from that the BSEC has recently taken a number of positive decisions regarding mutual funds to ensure good governance in the capital market. The regulator also issued a notification on September 6 regarding the disclosure of financial information of mutual funds.
It is to be noted that in the circular issued by BSEC on September 6 regarding the disclosure of financial information of mutual funds, it has been stated that 30 days before the expiration of the term of each mutual fund, the shares and units of the mutual fund should be disclosed.
This information needs to be e-mailed to the unit holders of the fund as well as published on the website of the asset management company. Asset management companies are required to publish the fund’s quarterly, half-yearly and annual financial statements on its website.