Compare Bangladesh's open-end mutual funds across returns, risk, costs, size, ownership and governance—without relying on brand names alone.
The short answer
There is no single “best” asset management company (AMC) for every investor. A better approach is to compare the fund you may actually buy: its long-term return, how much it fluctuates, its worst past fall, costs, exit rules, portfolio and the people responsible for managing it.
Bangladesh has a crowded mutual-fund market. The regulator lists 67 AMCs and 133 funds, while more than 100 open-end funds are offered by more than 40 managers. That makes a simple brand-based choice difficult.
What this guide does
- Focuses on open-end funds because new closed-end funds are no longer being approved under the 2025 Mutual Fund Rules.
- Compares three practical categories: income/fixed income, balanced and growth/equity funds.
- Explains return, volatility, drawdown, dividend yield, exit load and expense ratio in everyday language.
- Looks beyond performance at ownership, governance, fund size and operating history.
- Ends with a ten-question checklist you can take to an AMC before investing.
One important warning
The figures come from different published sources and dates. Two-year returns are cumulative, not annualised; five-year figures are annualised. Past performance does not predict future results. Always verify the latest fact sheet, prospectus and audited accounts before investing.
1. Open-end vs. closed-end: why the distinction matters
An open-end fund generally allows investors to buy or redeem units from the fund at the applicable NAV. A closed-end fund trades on the stock exchange, so its market price can be very different from the value of its underlying assets.
The regulatory direction
- The BSEC (Mutual Fund) Rules, 2025 were gazetted on 12 November 2025 and took effect immediately.
- No new closed-end mutual funds will be approved; future registrations are for open-end schemes.
- Existing closed-end funds cannot extend their tenure.
- Under Rule 62(2), a closed-end fund trading at a discount of roughly 24–25% or more to its six-month rolling average NAV must have its trustee convene a special general meeting. Unitholders then decide whether to convert the fund to open-end or move toward liquidation.
Open-end vs. closed-end performance
| Measure | DSEX | Closed-end sector | Best open-end income | Best open-end balanced | Best open-end growth |
|---|---|---|---|---|---|
| YTD | +13.8% | +2.4% | +11.0% | +16.5% | +14.2% |
| 1 year | +1.3% | -5.9% | +12.3% | +11.1% | +6.7% |
| 2 years | -5.0% | -15.7% | +35.2% | +28.9% | +34.1% |
Sources: UCB Stock Brokerage Weekly Mutual Fund Review, 10 September 2026; BRAC EPL Research Weekly Report, 13 September 2026. Open-end figures are total returns adjusted for dividends; closed-end figures are NAV-based sector aggregates.
The two-year gap is striking: while the broad market lost 5.0% and the closed-end sector lost 15.7%, the strongest open-end funds in the three categories gained roughly 29–35%. This does not mean open-end funds will always outperform; it shows why fund-level selection matters.
2. Income funds: lower volatility, but still not risk-free
Income or fixed-income funds typically invest in government treasury bonds and bills, bank FDRs and corporate or subordinated bonds. They generally fluctuate less than equity funds and may suit investors who value stability and regular liquidity.
Leading income funds
| Fund | YTD | 1 yr | 2 yr* | Dividend yield |
|---|---|---|---|---|
 UCB Income Plus Fund | 11.0% | 12.3% | 35.2% | 0.0% |
 Ekush Stable Return Fund | 11.6% | 15.8% | 35.0% | 0.0% |
 EDGE High Quality Income Fund | 8.1% | 9.9% | 31.0% | 5.6% |
 Shanta Fixed Income Fund | 11.2% | 14.6% | 29.1% | 6.4% |
 Sandhani AML SLIC Fixed Income Fund | 10.9% | 12.3% | 29.1% | 0.0% |
 IDLC Income Fund | 7.1% | 10.3% | 21.6% | 5.4% |
*Two-year figures are cumulative, not annualised. Returns and dividend yield: UCB Stock Brokerage, NAV as at 9 September 2026.
Risk and cost
| Fund | AUM (BDT mn) | 3-yr volatility | Worst drawdown | Positive years | Mgmt. fee |
|---|---|---|---|---|---|
| UCB Income Plus | 3,783 | 6.3% | -4.0% | 100% | 0.70% |
| Ekush Stable Return | 616 | 20.1%* | -20.1%* | 96% | 0.50% |
| EDGE High Quality Income | 730 | 6.3% | -5.1% | 100% | 1.00% |
| Shanta Fixed Income | 2,229 | 6.9% | -3.8% | 100% | 2.50%→1.00% |
| IDLC Income | 977 | 8.8% | -5.2% | 100% | 0.70% max |
*The Ekush volatility/drawdown figures appear to be driven by a single anomalous NAV print and should be verified with the asset manager.
VIPB Fixed Income Fund had the highest YTD income-fund return at +16.9% and +13.2% over one year. It launched in September 2024, however, so it does not yet have a two-year or three-year track record.
3. Balanced funds: the label does not tell the whole story
Balanced funds combine shares, bonds and deposits. The important point is that “balanced” can mean very different things. In the data reviewed, equity exposure ranged from about 46% in IDLC Balanced to 64% in LankaBangla 1st Balanced, 67% in VIPB Balanced and 73% in Ekush First Unit. Always read the latest portfolio statement.
Leading balanced funds
| Fund | YTD | 1 yr | 2 yr* | Dividend yield |
|---|---|---|---|---|
| Ekush First Unit Fund | 16.5% | 11.1% | 28.9% | 3.7% |
| IDLC Balanced Fund | 14.1% | 11.1% | 23.7% | 4.1% |
 VIPB Balanced Fund | 10.8% | 4.3% | 18.2% | 2.3% |
 LankaBangla 1st Balanced | 12.6% | 5.5% | 14.1% | 6.7% |
 ICL Balanced Fund | 13.6% | 4.6% | 13.5% | 8.7% |
Risk snapshot
| Fund | AUM (BDT mn) | Volatility | Worst drawdown | Positive years |
|---|---|---|---|---|
| Ekush First Unit | 295 | 12.5% | -9.7% | 96% |
| IDLC Balanced | 597 | 11.0% | -9.7% | 92% |
| VIPB Balanced | 124 | 15.6% | -13.8% | 96% |
| LankaBangla 1st Balanced | 375 | 11.4% | -13.3% | 68% |
| ICL Balanced | 184 | 17.4% | -13.2% | 88% |
Another fund worth noting: Mercantile Bank Unit Fund returned 21.4% over two years, which would place it third in the return table, but independent risk data used here was not available for it.
The lesson is simple: compare the actual asset mix, not just the fund name. A balanced fund with 70%+ in shares can behave much more like an equity fund than a conservative savings product.
4. Growth funds: higher potential, wider outcomes
Growth funds are dominated by listed shares — typically around 75–80%. They offer greater potential for capital growth, but their values can fall more sharply. This is where fund selection can make a particularly large difference.
Leading growth funds
| Fund | YTD | 1 yr | 2 yr* | Dividend yield |
|---|---|---|---|---|
| EDGE AMC Growth Fund | 14.2% | 6.7% | 34.1% | 1.2% |
| EDGE Bangladesh Mutual Fund | 13.7% | 6.2% | 33.6% | 2.4% |
| Ekush Growth Fund | 17.0% | 12.1% | 30.6% | 2.6% |
 CWT Opportunities Fund | 1.3% | -4.7% | 28.6% | 18.0% |
| IDLC Growth Fund | 14.7% | 4.2% | 21.7% | 3.1% |
| CWT Emerging Bangladesh First Growth | 9.2% | 3.5% | 18.9% | 8.2% |
Risk snapshot
| Fund | AUM (BDT mn) | Volatility | Worst drawdown | Positive years |
|---|---|---|---|---|
| EDGE AMC Growth | 445 | 15.8% | -11.0% | 96% |
| EDGE Bangladesh MF | 220 | 15.6% | -11.3% | 96% |
| Ekush Growth | 287 | 12.4% | -9.7% | 100% |
| CWT Opportunities | 57 | 14.2% | -13.5% | 76% |
| IDLC Growth | 936 | 12.1% | -8.8% | 92% |
| CWT Emerging Bangladesh First Growth | 54 | 15.1% | -12.2% | 92% |
Three lessons from the numbers
- The two-year winner is not the five-year winner. EDGE AMC Growth leads on two years at 34.1%, while CWT Emerging Bangladesh First Growth leads the six on five years at 9.7% a year.
- A large dividend is not automatically a large return. CWT Opportunities paid an 18.0% dividend yield but had a -4.7% one-year return. The payout comes out of NAV.
- Fund size does not guarantee performance. IDLC Growth was the largest in this table but ranked fifth on two-year return; the smallest funds included both a mid-table and the best five-year performer.
5. How to understand risk of a Mutual fund?
Four simple measures
| Measure | Plain-English meaning | Why you care |
|---|---|---|
| Annualised volatility | How much the NAV typically moves up and down. | Sets expectations for how bumpy the ride can be. |
| Maximum drawdown | The biggest fall from a previous high to a later low. | Shows the loss you would have had to tolerate. |
| Downside deviation | Focuses only on negative movements. | Separates painful volatility from harmless upside movement. |
| Consistency | Share of rolling 12-month periods that ended in profit. | Shows how often the fund delivered a positive outcome. |
Typical ranges in the data
| Category | Typical 3-year volatility | Typical worst drawdown |
|---|---|---|
| Income | 6%–9% | -4% to -5% |
| Balanced | 11%–17% | -10% to -14% |
| Growth | 12%–18% | -9% to -14% |
These are broad ranges, not promises. If a fund is far outside its category range, ask the manager why. A lower-risk number can be good — but it can also reflect unusual valuation methods or a particular portfolio.
Why return alone can mislead
Imagine two funds both grow by 30% over two years. Fund A gets there through relatively steady gains; Fund B rises sharply, falls 15%, rises again and ends at the same point. The final return is identical, but the experience — and the chance that an investor panics and exits at the wrong time — is very different.
A special caution for income funds
Some income funds hold bonds at amortised cost. That can make the published NAV look smoother than the underlying economic value. A smooth NAV should therefore not be interpreted as “no risk.”
6. Exit loads and fees: the costs investors often miss
Exit load = the cost of leaving early
An exit load is a fee charged when you redeem units within a specified period. The rule can be different for a lump-sum investment and a SIP.
| Fund | Exit rule |
|---|---|
| IDLC Balanced | 3% if surrendered within 90 days |
| VIPB Balanced | Buy/sell spread of 3% (up to 5%) |
| IDLC Income | 2% <90 days; 1.5% 90–180; 1% 180–360; none after 1 year |
| IDLC Growth | Up to 2%, set by AMC board |
| EDGE AMC Growth | 2% within 60 days; up to 1% if SIP cancelled before 2 years |
| EDGE Bangladesh MF | 2% within 60 days |
| UCB Income Plus | Up to 1% within 100 days or over 25% of holding |
| VIPB Fixed Income | 1% within 3 months; zero thereafter |
| Shanta Fixed Income | 1% if SIP cancelled before 1 year |
| Ekush First / Growth / Stable Return | No exit load |
| LankaBangla 1st Balanced | No exit fee; partial surrender allowed |
Source: ReturnKoto fund pages, September 2026, based on fund prospectuses.
A 3% exit charge on a BDT 10 lakh investment is BDT 30,000. If a fund earns 10% a year, that fee is roughly four months of return. The right question is not “Does this fund have an exit load?” but “Does the exit rule fit the period I expect to stay invested?”
Management fee vs. total expense ratio
The management fee is what the AMC charges for managing the fund. The total expense ratio (TER) is the broader, all-in cost: management fee plus trustee, custodian, audit, listing, printing and other expenses. The NAV you see is already after these costs.
| EDGE fund | Published expense ratio (30 Jun 2026) |
|---|---|
| EDGE High Quality Income Fund | 0.94% |
| EDGE Al-Amin Shariah Consumer Fund | 2.05% |
| EDGE AMC Growth Fund | 2.30% |
| EDGE Bangladesh Mutual Fund | 2.50% |
Very few AMCs publish TERs clearly. Ask for the audited, total expense ratio for the latest completed financial year rather than relying only on the stated management fee.
7. History, ownership and governance matter
The ICB Unit Fund legacy
The Investment Corporation of Bangladesh (ICB) was established in 1976. It launched the country’s first closed-end mutual fund in 1980 and the ICB Unit Fund, Bangladesh’s first open-end mutual fund, in 1981.
The ICB Unit Fund became especially well known for regular cash dividends and access to IPOs and Stragetic investments. Its size eventually reached roughly BDT 50 billion, with thousands of savers. New certificates stopped being sold from 1 July 2002, following the restructuring associated with the Government–Asian Development Bank Capital Market Development Program. Existing holders could continue surrendering units and reinvesting dividends through CIP.
Five common AMC ownership models
| Model | Typical strength | Question to ask |
|---|---|---|
| State-owned | Scale and institutional permanence | How quickly are decisions made? |
| Bank / NBFI-owned | Balance sheet, distribution and brand | Does the fund buy the parent group’s securities? |
| Corporate group | Capital and patient ownership | Where does group interest end and investors’ interest begin? |
| Management-owned | Managers’ reputation and money are directly at stake | Can the firm survive a difficult two years? |
Management-owned examples in the data include EDGE AMC, Ekush Wealth Management and CWT Asset Management. None of the ownership models is automatically superior.
What “professional” should mean
- Named investment professionals with verifiable qualifications.
- A clear sponsor, trustee and custodian. The trustee and custodian should be independent of the AMC.
- Continuity: know who the current CEO, chairman and fund manager are and how long they have been responsible.
- Access to audited accounts and the latest portfolio statement.
- An explanation if a large part of the portfolio is invested in securities linked to the sponsor group.
8. Size does matter for AMC
Open-end AUM by AMC
| # | AMC | Funds | AUM (BDT mn) | Share |
|---|---|---|---|---|
| 1 | ICB Asset Management | 15 | 27,379 | 47.0% |
| 2 | UCB Asset Management | 3 | 4,200 | 7.2% |
| 3 | Shanta Asset Management | 3 | 3,576 | 6.1% |
| 4 | IDLC Asset Management | 4 | 3,376 | 5.8% |
| 5 | VIPB Asset Management | 6 | 2,408 | 4.1% |
| 6 | EDGE AMC | 4 | 1,539 | 2.6% |
| 7 | AIMS of Bangladesh | 1 | 1,472 | 2.5% |
| 8 | Sandhani Asset Management | 2 | 1,438 | 2.5% |
| 9 | Ekush Wealth Management | 3 | 1,198 | 2.1% |
| 10 | LankaBangla Asset Management | 5 | 1,109 | 1.9% |
Industry total: 102 open-end funds; BDT 58,214 mn. Source: LankaBangla Financial Portal, 23 July 2026. The source notes a possible AIMS/AMS row transposition, so verify current figures with the AMC.
Size can help because large funds spread fixed costs and may absorb redemptions more easily. But size is not performance: the largest equity fund in this review was fifth on two-year return, while a much smaller fund had the best five-year result.
The ten names who are active in the Industry
This is a research shortlist, not a ranking or recommendation.
- ICB Asset Management — dominant by AUM, state-owned and deeply established.
- UCB Asset Management — second by AUM; UCB Income Plus leads the income category on two-year return.
- Shanta Asset Management — established manager with strong fixed-income performance.
- IDLC Asset Management — broad product coverage, moderate returns and relatively low drawdowns.
- VIPB Asset Management — long operating history and strong recent income/balanced results.
- EDGE AMC — leading two-year growth returns and unusually transparent expense-ratio disclosure.
- AIMS of Bangladesh — private-sector pioneer with deep historical significance.
- Ekush Wealth Management — leading two-year balanced return and strong recent growth performance.
- LankaBangla Asset Management — long balanced-fund history and no exit fee on its flagship fund.
- Impress Capital — notable balanced dividend yield, but higher volatility and less complete fee disclosure.
Also worth reviewing: CWT Asset Management, Sandhani Asset Management and Shahjalal Asset Management, each of which appears prominently in specific performance measures.
9. The investor’s ten-question checklist
Take these questions to the AMC before you sign an application form.
1. Is this fund open-end? If it is closed-end, what is the current discount to its six-month average NAV and has the trustee acted under Rule 62(2)?
2. What are the YTD, 1-year, 2-year and 5-year returns after adjusting for dividends, and what is the exact “as at” date?
3. What are the annualised volatility, worst drawdown and percentage of rolling 12-month periods that ended in profit?
4. What was the total expense ratio in the latest completed financial year — not just the management fee?
5. What is the exit load, how long does it apply, and is the rule different for SIP and lump sum?
6. What is the current AUM, what date is it for, and is it measured at cost or market value?
7. How many unitholders are there, and what percentage is held by the five largest?
8. Who is the sponsor, trustee and custodian? Are they three different institutions?
9. Who sits on the AMC board, what are their credentials, and how long has the current fund manager managed the fund?
10. Can you show me the latest quarterly portfolio statement, and does the actual asset mix match the fund’s label?
Bottom line
Do not choose an AMC simply because it is large, old, famous or currently at the top of a return table. Start with your own time horizon and risk tolerance, then choose the fund whose portfolio, long-term record, risk, costs and liquidity fit that need. Use the AMC’s ownership, governance and transparency as an additional filter.
Sources and limitations
Primary data: UCB Stock Brokerage Weekly Mutual Fund Review, 10 September 2026; BRAC EPL Research Weekly Report on Mutual Funds, 13 September 2026; ReturnKoto fund pages, August–September 2026; LankaBangla Financial Portal Weekly Open End Mutual Fund Review, 23 July 2026; BSEC Mutual Fund Rules, 2025 and related regulatory/corporate disclosures.
Limitations: two-year returns are cumulative rather than annualised; five-year figures are per annum and may use slightly different end dates. Independent volatility and drawdown data cover only a subset of the 100+ open-end funds. Some income-fund NAVs may be smoother because bonds can be carried at amortised cost. Industry-wide unitholder counts are not published.
Disclaimer
This article is for education and research. It is not investment advice, a recommendation, or an offer or solicitation to buy or sell mutual-fund units. Briddhi.net is an information aggregator and does not manage money. Past performance does not predict future results, and every fund can lose value. Verify figures against the AMC’s latest fact sheet, prospectus and audited accounts before investing.
Prepared September 2026 • Briddhi.net • For education, not investment advice