A practical seven-step guide to setting goals, choosing a fund type, investing through SIP or lump sum, and checking the people managing your money.
You work hard. You save a part of your salary every month. That money sits in a savings account or an FDR, and it feels safe. But prices keep going up, and every year the same money buys a little less.
A mutual fund is one of the simplest ways for a busy professional to put savings to work in the market without picking stocks on your own. This guide walks you through it in following seven steps:
1. Start with a plan
Before you look at any fund, answer three questions. What is the money for? When will you need it? And how much loss can you handle along the way?
That last question has two parts:
- Risk-taking ability is how much loss your can actually absorb. If you are young, have a steady income, few people depending on you and an emergency fund in place, your ability is high.
- Risk tolerance is how much loss you can live with emotionally, without losing sleep or selling in panic.
When the two do not match, follow the lower one.
| Example: Rafi’s planRafi is 32 and works at a bank. He wants Tk 20 lakh for his daughter’s university education in 12 years. He has a long time ahead and a steady salary, so his ability to take risk is high. But when the market fell a few years ago, he sold his shares in panic. His tolerance is only moderate.So instead of putting everything in shares, a balanced split suits him better, for example about 60% in equity funds and 40% in a fixed income fund. As his daughter’s admission gets closer, he slowly moves more money into fixed income, so a late market fall cannot hurt the goal. |
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Want a structured starting point? Try the Financial Planner on ekushwml.com. It asks a few simple questions, measures both your ability and your willingness to take risk, and suggests a mix that fits you.
2. What is a mutual fund?
A mutual fund pools money from many investors. A professional fund manager invests that money in shares, bonds and deposits. In return, each investor owns units of the fund.
The value of one unit is called the NAV (Net Asset Value). It is simply everything the fund owns, divided by the number of units. When the investments rise in value, the NAV rises.
In Bangladesh, there are two types of mutual funds:
- Closed-end funds have a fixed number of units and are traded on the Dhaka and Chittagong stock exchanges, like shares. You need a BO account and a broker. Their market price often sits below the NAV, so you may sell for less than the fund is actually worth.
- Open-end funds let you buy and sell units directly with the asset management company, at a price based on the NAV. There is no limit on units. For most first-time investors, this is the simpler route.
Open-end funds come in four main types:
| Type | What it holds | Suits you if… | Example |
|---|---|---|---|
| Pure equity | Mostly listed shares | You can wait 5+ years and sit through ups and downs | Ekush Growth Fund (EGF) |
| Balanced | A mix of shares and fixed income | You want growth but with smaller swings | Ekush First Unit Fund. It can move part of its money to fixed income, but it remains equity-oriented |
| Fixed income | Treasury bills and bonds, deposits, corporate bonds | You want steady returns and easy access to money | Ekush Stable Return Fund (ESRF) |
| Shariah | Shariah-compliant shares and sukuk | You want your investment to follow Islamic principles | EDGE Al-Amin Shariah Fund. |
3. How to invest: SIP or lump sum
- SIP (Systematic Investment Plan): you invest a fixed amount every month. When prices are low, your money buys more units. When prices are high, it buys fewer. Over time this smooths out your buying price, and it builds a saving habit. For most salaried people, this is the best way to start.
- Lump sum: you invest a larger amount at once, such as a festival bonus or the proceeds of a matured FDR. If you are unsure about market timing, split it into parts over three to six months.
Whichever route you choose, think long term. Give an equity fund at least five years. A fixed income fund can suit shorter goals of one to three years. (Individuals can start in Ekush Managed Funds with Tk 5,000.)
4. Judging return and risk
Return. Look at how the NAV has grown over at least three to five years, not the last one or two. Short periods can make any fund look brilliant or terrible. Use the total return figure, which counts dividends too. Then compare it with a fair yardstick: the DSEX index for an equity fund, and the FDR rate for a fixed income fund.
| Fund | Started | Return since start | Per year (approx.) | Benchmark, same period |
|---|---|---|---|---|
 Ekush First Unit Fund | Mar 2020 | 127.08% | 13.2% | DSEX: 29.66% |
| Ekush Growth Fund | Feb 2022 | 50.01% | 9.4% | DSEX: -21.54% |
| Ekush Stable Return Fund | Mar 2023 | 55.90% | 13.1% | 9.5% FDR: +38.13% |
Source: ekushwml.com, as on 21 September 2026. “Per year” is our compound annual calculation from the since-start figures. Past performance is not a guide to future returns.
Risk. Risk mainly means volatility: how much the NAV jumps up and down. Two funds can both average 10% a year, but if one swings 20% up and down along the way, it is much harder to hold without panicking.
The best test is bad times. Check how a fund behaved when the market fell. Did it fall less than the index? How long did it take to recover? For example, since February 2022 the DSEX fell about 20% through a long, difficult stretch for the stock market, while Ekush Growth Fund grew about 48%. A record like that, through a full cycle, tells you far more than one good year. Still, one good stretch never guarantees the next.
5. Check the exit load
An exit load is a small fee charged if you sell your units within a set period after buying. It discourages short-term trading. Each fund discloses its exit load in its prospectus and investor statements, which are available on the asset manager’s website. Check it before you invest, especially for money you may need soon.
6. The most important check: who manages your money
This is the check that matters most, and the one most investors skip. Your money is held by a custodian bank, but every investment decision is made by the asset management company. So ask: who runs it, and who watches over them?
Many investors prefer asset managers backed by large institutions such as banks and NBFIs, and that is reasonable. A big parent brings reputation and resources. But some newer, independent firms are equally professional, and you can see it in their boards and teams. Judge by evidence, not by size alone:
- Board: are there experienced and independent directors, not just well-known names?
- Team: what are the fund managers’ qualifications, and how have they managed money through bad markets?
- Disclosure: does the company publish NAV, portfolio holdings, fees and financial statements regularly and clearly?
- Regulatory record: has the company or its funds faced penalties from the regulator?
Your five-step summary
- Set your goal and timeline, and follow the lower of your risk ability and risk tolerance.
- Choose the fund type that fits: equity, balanced, fixed income or Shariah.
- Start a monthly SIP, or invest a lump sum in stages, and stay for the long term.
- Judge funds on at least five-year returns and on how they held up in bad times, and check the exit load.
- Above all, check the governance and professionalism of the asset management company.
Ready to begin? Use the Financial Planner or explore our funds at ekushwml.com.
| Important informationMutual fund investments are subject to market risk. The NAV of a fund can go down as well as up, and past performance is not a guide to future returns. Please read the prospectus and fund documents carefully before investing. Figures are as on 21 September 2026 and are taken from ekushwml.com. This article is for general education and is not personal investment advice.Author disclosure: the author is Managing Director of Ekush Wealth Management Limited, which manages Ekush First Unit Fund, Ekush Growth Fund and Ekush Stable Return Fund mentioned in this article. |
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