An evaluation of the performance of IDLC Asset Management Limited mutual funds

Abstract

IDLC Asset Management Limited is one of Bangladesh's prominent asset management companies, and it was established in November 2015. IDLC Asset Management Company is a wholly-owned subsidiary of IDLC Finance Ltd., one of Bangladesh's most renowned and largest non-bank financial institutions. The IDLC Group launched IDLC Asset Management Limited to provide investors with more varied investment options than they could have on their own. It offers individuals and institutions investment-related information, mutual funds, and alternative investment solutions. The product and service offering comprises four open-ended mutual funds: the Balanced Fund, the Growth Fund, the Shariah Fund, and the Income Fund. Furthermore, IDLC AML offers institutional investors private equity and venture capital investment solutions. I worked as an intern in the Finance and Operations division at IDLC AML, where I was obliged to work three days a week in the operations team and two days a week in the finance team. My regular responsibilities included: archiving the existing investor files, verifying investor forms, data and correspondence management, and document preparation for vendors. The goal of data archiving was to enable all departments of IDLC AML to access investor files by clicking on their specific registration numbers. Working with one of the two most important teams at IDLC AML enabled me to get a wide range of skills and participate in a productive job rotation. This study intends to examine the performance of the four open-end mutual funds managed by IDLC AML based on their financial statements and weekly NAV to measure the financial performance and risk-adjusted returns of respective mutual funds. In addition, the risk-adjusted returns of the AML mutual funds have been compared to the market benchmark to see whether they provide greater returns than the market. This study will aid the average investor in making an optimally informed decision about which IDLC AML fund to invest in based on risk-return expectations. To achieve the study's objective, quantitative and qualitative assessments such as financial ratios, standard deviation, beta, Sharpe ratio, and Treynor ratio were utilized as analytical tools. The study concluded with several suggestions based on the IDLC AML issue's findings.