- What is Mutual Fund?
- Types of Mutual Fund
- Required documents
- Forms
- Purchase and Surrender
- Disclaimer
What is a mutual fund?
The money pooled in by a large number of people (or investors) is what makes up a Mutual Fund. This fund is managed by a professional fund manager. It is a trust that collects money from a number of investors who share a common investment objective. Then, it invests the money in equities, bonds, money market instruments and/or other securities. Each investor owns units, which represent a portion of the holdings of the fund. The income/gains generated from this collective investment is distributed proportionately amongst the investors after deducting certain expenses, by calculating a scheme’s Net Asset Value or NAV.
What are the different types of mutual funds?
- Open-end – 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 – 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.
Required documents to Buy Zenith Annual Income Fund - ZAIF
What is the list of required documents?
For Individual investor, following documents are required –
- Copy of National Identity Card/Passport/Driving license/Identity Card (for students)
- One Passport size photo – Single applicant, Joint applicant (if any), Nominee
- Bank statement or Photocopy of a blank cheque leaf
- E-TIN Certificate
For institutional investor, following documents are required –
- Extract of Board resolution for investing in mutual fund
- Power of Attorney of the Authorized signatories
- Memorandum and Article of Association
- Trust Deed (for mutual fund)
- Certificate of Incorporation
- One Passport size photo – CEO / MD, 1st Authorized Person, 2nd Authorized Person (if any)
- Bank statement or Photocopy of a blank cheque leaf
- E-TIN Certificate
Forms for download
Purchase and Surrender Procedures
Application Process
Application must be made by an individual (both resident and non-resident), a corporation or company (both local and foreign), a trust or a society (registered in or outside Bangladesh) and not by a firm, minor or person of unsound mind. Applications from the Insurance, Financial / Capital Market Intermediaries or any other Companies must be accompanied by Memorandum and Articles of Association.
Joint application by two persons is acceptable. In such cases, registration and issuance of “Confirmation of Unit Allocation” will be in favor of principal applicant while dividend and other benefits, if any, will be addressed to the bank account of principal applicant mentioned in the application form / bank account mentioned in BO account. In case of the death of any of the joint holders, only the survivor shall be recognized as having any title to the Units. On death of both the joint holders, the title to the units will bestowed upon the nominee mentioned in the application form.
Minimum Purchase Amount
For individual investors:
BDT 5,000.00 (Five Thousand Taka) against 500 units during IPO. The unit purchase price will vary depending on the NAV of the mutual fund.
For institutional investors:
BDT 50,000.00 (Fifty Thousand Taka) against 5000 units during IPO. The unit purchase price will vary depending on the NAV of the mutual fund.
The minimum subscription amount for the individual or institution may change in the future upon due approval from the trustee.
Purchase Procedure
Application for purchase of units should be accompanied by an account payee cheque / pay order / bank draft in favor of ‘Zenith Annual Income Fund’ for the total value of units.
After clearance / encashment of the cheque / pay order / bank draft, the applicant will be issued with a “Confirmation of Unit Allocation” against every purchase of units he / she / the institutional investor applies for; the units will be delivered to the unit-holder’s BO A/C.
Surrender Procedure
Partial surrender (fraction of total units held under a Unit Allocation Confirmation) is allowed without any additional cost subject to minimum surrender quantity is 500 (Five Hundred) units for individuals and 5,000 (Five Thousand) units for institutions. Upon partial surrender, the unit-holder will be issued with a new “Confirmation of Unit Allocation” representing the balance of his / her / its unit holding.
Full surrender of units is also allowed without any additional cost. For both, partial and full surrender, investor must submit surrender form to Zenith Investments Limited and submit CDBL transfer form to respective brokerage house.
Redemption Procedure
Dividend will be delivered in cash or by way of units under Cumulative Investment Plan (CIP) as the applicant gives option in the application form.
All payments / receipts in connection with or arising out of transactions in the units shall be in Bangladeshi Taka.
The redemption shall be made on first come first serve basis. If the redemption request on a particular day exceeds 1% of the outstanding unit, the Asset Manager may differ, if required, the redemption request over 1% for a maximum period of 7 (seven) working days. The Asset Manager shall proceed to sell adequate assets and / or arrange loan as it deems fit to pay the surrender money within the stipulated time in the best interest of the unit-holders.
Disclaimer
The materials contain in the site is only for information. It is not intended as an offer or solicitation to invest in the schemes. The company will not take any responsibility for investment decision based on the available information. All investments are subject to market risks. There is no guarantee that the objectives of the schemes will be achieved. The website is solely for the use of the resident and non-resident Bangladeshis.
