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  • What is Mutual Fund?

  • What are the Benefits of a Mutual Fund?

  • What are the Benefits of a Mutual Fund?

MF CALCULATOR


A simple tool to get an idea of the returns on your mutual fund investments made through SIP

BDT
500
5lac
Years
2 Years
10 Years
%
1%
40%
BDT
500
5lac
Years
2 Years
10 Years
%
1%
40%

Total Value of Investment

1,00,000 BDT

Start SIP

Required Investment

1,00,000 BDT

Start SIP

A simple tool to get an idea of the returns on your mutual fund investments

BDT
5k
5lac
Years
2 Years
10 year
%
1%
40%
BDT
5k
5lac
Years
2 Years
10 year
%
1%
40%

Total Value of Investment

1,00,000 BDT

Required Investment

1,00,000 BDT

Frequently Asked Question


What is Mutual Fund?
A mutual fund is a professionally managed investment vehicle that pools money from many investors to invest in securities such as stocks, bonds, money market instruments and similar assets across a wide range of industries and sectors. Mutual funds are managed by professional asset managers to attain the investment objectives of the investors of the fund.

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 number 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.

There is no guaranteed percentage of return. Empirically, it has been observed that mutual funds can generate a higher return than all other asset classes in the long run.

There is no guaranteed percentage of return. Empirically, it has been observed that mutual funds can generate a higher return than all other asset classes in the long run.

Profit is not guaranteed when investing in CandleStone Rupali Bank Growth Fund. However, mutual funds can generate better risk adjusted returns in the long-run, even in volatile markets by leveraging professional fund management skills.

An expert fund manager is a skilled professional capable of generating better returns and managing risks through dynamic asset allocation.

Bangladesh Securities and Exchange Commission (BSEC) is the regulatory body of Mutual Funds in Bangladesh.

Sponsor: The sponsor initiates the mutual fund by subscribing minimum of 10% of the total fund size. The Sponsor appoints the trustee, Custodian and the Asset Management Company.

Trustees: The board of trustees are responsible for protecting the interests of the unit holders. It is an independent body having received the trusteeship license from the regulator and is not associated with the Sponsor or the Asset Management Company.

Custodian: The custodian is responsible for the physical handling and safe keeping of the assets managed by the Asset Management Company. They receive the Custodian license from the regulator and are independent of the Sponsor or the Asset Management Company.

Asset Management Company (AMC): The Asset Management Company is responsible for floating and managing the mutual funds in accordance with Bangladesh Securities and Exchange Commission regulations and guidelines provided by the Trustee.

Net Asset Value (NAV) is defined as the market value of all assets in the fund fewer liabilities. NAV is generally declared on a per unit basis, dividing the total Net Asset Value by the outstanding number of units of the fund.

A fund’s NAV goes up or down depending on the change in the market value of the assets held by the fund. Therefore, if the market value of the assets falls substantially, there is a chance of the NAV going below the face value of the fund. However, such events are expected to be temporary as NAV is projected to grow in the long term with expert asset management.

No. Currently, CandleStone Investment Partners Limited does not offer Shariah Compliant investment products.

No, there is not exit fee for Unit holders of CandleStone Rupali Bank Growth Fund. However, for SIP investors, Units surrendered in less than 2 years of purchase will get 1% less (Exit Load) than the published “Investor’s Sale Price”.  For CandleStone SIP Investors, 2 years will be calculated from 1st installment date.

Shares which represent the extent of ownership in a mutual fund is called a unit. Investors can purchase or redeem units at the fund’s current Net Asset Value (NAV) per share.

The below formula is used to determine the Fund Per Unit NAV:
Total NAV of the fund = Value of Assets – Liabilities 
NAV per unit = Total NAV of the fund / No. of units outstanding.

The NAV of CandleStone Rupali Bank Growth Fund is declared on Thursday of every week on our website: http://www.csrbgf.com/performance-and-reports, and in 1 daily newspaper and 1 online newspaper.


How much is the management fee?

Fund Size (in BDT Crore)

Highest Allowable Management Fee

Less than 5

2.5%

5 < 25

2.0%

25 < 50

1.5%

> 50

1.0%

Source: Page 601-602, Chapter 9, Section: Securities & Exchange Commission (Mutual Fund) Rules 2001.

This rate may change as determined by BSEC from time to time.

A commission fee applied when initially purchasing units in a mutual fund, which is deducted from the total investment amount. There is NO front-end load for mutual funds of CandleStone Investments Partners Limited, making it most-beneficial for the investors.

A commission fee applied when redeeming units from a mutual fund, which is deducted from the total investment amount. There is NO exit load for mutual funds of CandleStone Investments Partners Limited, making it most-beneficial for the investors.

Both individuals (singly or jointly) and institutions (local and foreign) can invest in a mutual fund. In addition, other mutual funds and collective investment schemes can also invest in a mutual fund.

REQUIRED DOCUMENTS for Mutual Fund Application are as follows:

Documents

Quantity

Applicant's NID / Passport copy

1

Nominee's NID / Passport copy

1

Applicant's passport-size Photo

4

Nominee's passport-size Photo

3

Applicant's Bank Statement (last 6 months) OR Photocopy of a blank cheque leaf

1

Applicant's E-TIN Certificate copy

1

Account Payee Cheque in favor of the Fund

1

*Please note, all documents / photos should be signed by the applicant.

 

We invest in stocks, bonds and other money market securities to generate maximum risk adjusted returns. The full investment portfolio will be disclosed on a quarterly basis. To view Asset Manager’s Report and Portfolio and Financial statements, please visit http://www.csrbgf.com/performance-and-reports

There are two types of returns any investor can get from investing in a mutual fund:

  1. Capital Gain
  2. Dividend

Investors can deposit the money (cheque / pay order / demand draft) to the office of CandleStone Investment Partners Limited or any selling agent as appointed by the Asset Management Company. The investor can directly deposit / BEFTN the fund in the designated bank account of the mutual fund.

Yes, it is mandatory to have a BO account as units of the mutual fund will be credited to the designated BO account of the unit-holder.

No, there is no lock-in period in the investment of the mutual fund.

The units can be transferred from one unit-holder to another through the Asset Management Company.

As per regulation.

Yes, there is a monthly deposit scheme for the mutual funds managed by CandleStone Investment Partners Limited, which is known as SIP (Systematic Investment Plan).

The minimum amount to invest in our mutual fund is 500 units for individuals and 5000 units for institutions. In terms of taka, the amount is equivalent to 500 OR 5000-units x Investor’s Buy Price. Investors must also purchase units in increments of 500.

For example: If the Investor’s Buy Price is BDT 11.20, the minimum amount one can invest = BDT 11.20 x 500 units = BDT 5,600.

To check this week’s Investor’s Buy Price, please visit http://www.csrbgf.com/

*Please note there is no maximum purchase amount as investors can purchase infinite units in multiples of 500.

The price or NAV at which an investor can buy units of an open-ended fund is called an investor’s buy price.

The price or NAV, at which an investor can repurchase or sell units of an open-ended fund is called an investor’s sell price.

Yes, investors can buy units after IPO. The difference is that during IPO, investors purchase units at face value, which is BDT 10.0, whereas, after the IPO closing, investors purchase units at the investor’s buy price or NAV declared by the Asset Management Company.

During IPO, investors must purchase at face value of BDT 10.00:

Individuals: 1 lot = 500 units

Face Value: BDT 10.00 

Minimum Investment: 500 units x BDT 10.00 = BDT 5,000

After IPO, investors must purchase at NAV, which can be higher or lower than face value:

 

Individuals: 1 lot = 500 units

 

Net Asset Value: BDT 10.70 (for example)

 

Minimum Investment: 500 units x BDT 10.70 = BDT 5,350

 

OR

 

Net Asset Value: BDT 9.40 (for example)

 

Minimum Investment: 500 units x BDT 9.40 = BDT 4,700

 

The sale proceeds will be credited to the bank account of the unit-holder within 5 working days after surrendering the units. Please ensure the submission of the Surrender Form (to the Asset Manager) and CDBL Transfer Form (to the designated Broker House) to complete the Surrender Procedure. Refer to http://www.csrbgf.com/forms-and-documents for all forms.

Yes, an acknowledgement slip will be provided while you submit the “Purchase Form” along with the cheque. A “Confirmation of Unit Allocation” will be issued in favor of the unit-holder after crediting the units to the BO account of the unit-holder.

Every investor of CandleStone Rupali Bank Growth Fund will have access to Unit Allocation Certificate on our digital platform. To access your certificate and all other investment information, please log in with your provided username and password here: http://www.csrbgf.com/#


Is SIP available for CandleStone Rupali Bank Growth Fund?

Yes.

 

Benefit

Result

1

ROUTINE INVESTMENT

 

SIP allows you to allocate a fixed amount of money for investment and brings the habit of routine savings and investment.

2

COST REBALANCING

For same amount of investment, you will get more units in bearish market and vice versa. Thus, the cost of units purchased is averaged out.

3

POWER OF COMPOUNDING

In SIP scheme your small amount of money invested regularly over a long period of time results to a sizable amount of wealth which includes your own contribution to SIP accumulated with investment returns compounded over the years.

4

EASY TO INVEST

SIP investment offers convenience as you can choose to invest an amount periodically which will not burden your budget.

5

NO NEED TO TIME

THE MARKET

SIP enables you to delegate the worry of market movement to the Asset Manager and helps to avoid the dilemma of whether it is a right time to invest or not.

6

FLEXIBLE INVESTMENT

OPPORTUNITY

Based on your financial capacity and future goal you can choose the tenure (2 to 10 years) and interval of Investment best suited to your financial plan and capacity.

7

TOOL FOR ACHIEVING FINANCIAL GOALS

SIP can be the right tool to achieve your large financial goal i.e.- dream house, children’s education, etc. by investing systematically even in small amounts over a long period of time.

 

Cost Averaging is investing a fixed amount on a regular basis for the long-term to take advantage of the market cycle. As the investment amount is fixed, more units are purchased when the price is low and fewer when the price is high. Suppose A invested BDT 60,000 at a time, while B invests the same amount but in an installment of BDT 5,000 every month for a year. The table below illustrates how their investment would behave:

Month

Purchase Price

Amount Invested

No of Units

A

B

A

B

January

10.45

         60,000

         5,000

           5,742

           478

February

10.35

0

         5,000

0

           483

March

10.25

0

         5,000

0

           488

April

10.10

0

         5,000

0

           495

May

10.20

0

         5,000

0

           490

June

10.30

0

         5,000

0

           485

July

10.35

0

         5,000

0

           483

August

10.20

0

         5,000

0

           490

September

10.25

0

         5,000

0

           488

October

10.35

0

         5,000

0

           483

November

10.45

0

         5,000

0

           478

December

10.55

0

         5,000

0

           474

Total

 

         60,000

      60,000

           5,742

        5,817

 

So, B ended up with more units as his average cost reduced to BDT 10.32 as, over a period of time, market fluctuations are averaged.

Please see the following steps for investing in SIP of CandleStone Rupali Bank Growth Fund:

Step-1: Visit office of the Asset Manager or Selling Agents of CandleStone Rupali Bank Growth Fund to discuss and collect necessary documents and form.

Or

Step-1: visit www.csrbgf.com to know more about the SIP and download necessary documents and forms.

Step-2: Fill up the hard copy SIP Form or fill up the digital Forms of the SIP.

Step-3: Submit the Form to the Asset Manager or Selling Agents along with the required documents i.e. proof of BO Account and Bank Account, copy of photo ID, passport size photo.

Step-4: Deposit required SIP subscription amount along with the documents and Forms

Scenario 1 - Auto-renewal: If the investor selects the auto-renewal option in the SIP section of the application form, then installments will continue until further notice from the investor.

Scenario 2 – Surrender: If the investor does not want to renew the SIP after maturity, then the matured amount will be kept in his / her BO account or transferred to the investor’s bank account as per his / her choice mentioned in the Application Form.

Scenario 3 – No Auto-renewal and No encashment/redemption: If the investor does not want to renew the SIP after maturity but wants to remain invested, then the matured amount will continue as a Non-SIP scheme till surrender. In this case, the investor will not have to pay a fixed amount on a monthly basis as the matured amount will be invested as a lump sum amount till he/she decides to surrender the units.

The maximum amount of SIP installment is BDT 1,000,000 per registration for individuals. There is no maximum limit for institutions.

To discontinue the SIP, the investor must provide an application to the Asset Manager at least 5 working days before the next Installment Date.

Units surrendered in less than 2 years of purchase will get 1% less (Exit Load) than the published “Investor’s Sale Price”.  For CandleStone Rupali Bank Growth Fund Investors, 2 years will be calculated from 1st installment date

There are no penalties for default. However, the default of 2 (two) installments will result in the discontinuation of SIP. If the investor wants to continue his SIP again, he/she will have to re-register as a new SIP account.

The investor can top-up his / her installment amount a maximum of 2 times against the same registration number. In that case, the investor has submitted the revised “Auto Debit Instruction Form” authorized from his / her bank having the same maturity date as mentioned earlier.

No.

Yes, the minimum investment amount is BDT 5,000.

Yes, the minimum lot size is 500 units. Any subscription to SIP must be for minimum 500 units or any multiple of 500.

Payment in respect of the SIP installment can be made using auto debit system provided against investor’s bank account or any other authorized method; Or through cash, cheques, BEFTN instruction or any other authorized method at pre-determined interval.

An arrangement made with the bank that allows CSIPL to transfer a fixed amount (as instructed by the investor) from the investor’s account on an agreed date

Request for change in bank account information should be submitted at least 5 working days before the next installment date.

No, the investor cannot pay a lump sum amount in advance for SIP. He/she will have to pay a pre-determined fixed installment every month at the investor’s discretion.

Yes, the investor may surrender his/her units partially and continue SIP installments till maturity.

7th of every month. If the investor defaults on that day, the auto-debit will occur on the 15th of that month at the prevailing NAV of that week.

The purchase Price will be valid from Sunday to Thursday. However, if the 7th or 15th is a Thursday, investors will be able to avail themselves of the prevailing purchase price of that particular week.

Auto-debit will take place on the following working day on that week’s purchase price.

Yes.

Yes. The minimum installment is BDT 10,000.

Yes, with two different registration numbers.

Yes, with two different registration numbers.

No, investors must surrender their current SIP account and register again for his/her preferred mutual fund.

Yes. Cash or reinvestment units as preferred by the investor.

Other Documents

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