You’ve seen the headlines. Investment Corporation of Bangladesh, the institution your family called “safe as the government itself,” just posted a Tk1,213 crore loss. Your mutual fund hasn’t declared dividends in two years. Meanwhile, your neighbor is sleeping soundly with his guaranteed 6.25% bank FD, and you’re refreshing your portfolio at 2 AM, wondering if you made a catastrophic mistake.
Here’s the uncomfortable truth: ICB isn’t what it used to be, but it’s also not the disaster the panic makes it seem.
I’ve watched this story unfold across thousands of retail investors who trusted the government-backed promise. Some are paralyzed by fear, others already fled to fixed deposits, and a few are quietly calculating whether this crisis might actually be an opportunity. Let me walk you through what actually happened, what those numbers mean for your money, and how to make a calm decision when everyone around you is either fleeing or frozen in fear.
Keynote: Investment Corporation of Bangladesh
Investment Corporation of Bangladesh operates as the nation’s sole state-owned investment bank, managing over Tk5,000 crore through unit funds and securities trading while serving as the capital market’s primary stabilization force. Despite its AAA credit rating and 69.2% government ownership, ICB faces unprecedented financial distress with Tk1,213 crore losses in FY25, Tk1,205 crore trapped in failing non-bank financial institutions, and 52 out of 62 mutual funds showing negative returns.
The Three Faces of ICB Nobody Explains Clearly
The Government Investment Bank That’s Supposed to Catch Us
ICB was founded in 1976 to develop Bangladesh’s young capital market. That’s 49 years of market-making history, longer than most of us have been alive. It’s the sole state-owned investment bank mandated to stabilize stocks during crashes, stepping in when panic hits and ordinary investors are rushing for exits.
This isn’t your typical commercial bank. ICB invests government money when fear grips the market, buying shares when everyone else is selling, providing liquidity when trading freezes.
The institution operates under the ICB Act 2014, not vague policy promises or bureaucratic guidelines. It’s a statutory corporation with defined responsibilities backed by legal framework and parliamentary oversight.
The Mutual Fund Manager Your Parents Trusted
ICB Asset Management Company Limited runs both open-ended and closed-end funds for retail investors like your parents, your uncle, maybe you. The flagship Bangladesh Fund manages Tk17,535.20 million with a net asset value of Tk78.02 per unit as of the latest disclosure.
Eight closed-end mutual funds once paid dividends reaching 240% in the glory years when DSE was climbing and confidence ran high.
Now ICB Asset Management oversees 62 mutual funds total. Here’s the part that keeps investors awake: 52 of them are showing losses. That’s 83.9% of their portfolio underwater, forcing massive provisioning requirements that kill any hope of dividend declarations.
The shift from glory years to crisis years tells the story better than any expert analysis:
| Period | Dividend Performance | Market Condition | Investor Sentiment |
|---|---|---|---|
| 2010-2015 | 180-240% returns | Bull market peak | Euphoric confidence |
| 2016-2020 | 15-25% steady yields | Moderate growth | Cautious optimism |
| 2021-2024 | 0-5% minimal returns | Floor price era | Growing concern |
| 2025 | Zero dividends | Historic losses | Full panic mode |
The Market Stabilizer That Got Caught in the Storm
Government ownership stands at 69.2% with an additional 27% held by institutional investors. This strategic importance means ICB won’t disappear overnight, but it doesn’t mean your returns are guaranteed either.
ICB maintains an AAA credit rating from National Credit Rating Ltd. despite posting massive losses. Think about that for a moment. The rating reflects institutional stability and government backing, not fund performance or investor profits.
Authorized capital reaches Tk10,000 million with paid-up capital of Tk8,672.59 million. These numbers matter because they show the scale of operations, the buffer available for absorbing shocks, and the government’s long-term commitment to capital market infrastructure.
ICB receives bailouts to prevent total market collapse, not to guarantee your returns. That’s the distinction most investors miss when they hear “government-backed.”
What Actually Happened: The Tk1,213 Crore Collapse Nobody Saw Coming
The Numbers That Stole Your Sleep
Record Tk1,213 crore consolidated loss in FY25 marks the first time in ICB’s history that the institution posted negative results. My colleague Kamal, who’s been investing since 1998, called it “watching the impossible happen in real time.”
Solo operations alone lost Tk935 crore in Q4, triggering the panic that sent investors flooding customer service lines and online forums with surrender requests.
Negative earnings per share of -14 means shareholders effectively paid instead of earning. Your investment didn’t just stagnate or grow slowly. It actively shrank, eating into your principal while you watched helplessly.
No dividend declared for the first time in decades, breaking family investment traditions where parents transferred unit certificates to children expecting steady income streams for generations.
Where Your Money Actually Got Stuck
Tk920 crore is frozen in failing banks and non-bank financial institutions that simply can’t pay back their obligations. People’s Leasing, Premier Leasing, Fareast Finance are in liquidation proceedings that could take years to resolve, if they resolve at all.
Tk3,459 crore provision shortfall hit the securities portfolio amid the market downturn. When stock prices collapsed, ICB’s holdings lost value faster than provisioning rules could adapt, creating a gaping hole in the balance sheet.
High interest borrowing costs kept eating profits even when capital gains disappeared completely. ICB borrowed heavily to fund operations and market stabilization, betting on recovery that never materialized in the timeline needed.
The floor price debacle and political instability crushed portfolio values simultaneously. Here’s how the losses break down:
| Loss Category | Amount (Tk Crore) | Impact on Investors |
|---|---|---|
| NBFI exposure frozen | 920 | Direct provisioning drain |
| Securities provision shortfall | 3,459 | NAV erosion across funds |
| High interest borrowing | 285 | Reduced dividend capacity |
| Market value decline | 1,100+ | Unrealized portfolio losses |
| Total Impact | 5,764+ | Historic negative returns |
The Embezzlement Stories That Make It Personal
Tk148 crore UFSL fund siphoning scandal remains unresolved with no investor compensation after 30 months. Real money belonging to real people vanished into alleged irregularities, and the legal process grinds forward while investors wait.
Tk31.9 million dividend fund embezzlement by ICB AMCL executives was caught red-handed, but catching doesn’t mean recovering. The funds meant for distribution to unit holders got diverted, frozen, tied up in investigations.
Tk220 crore RACE asset management irregularities are still stuck in court proceedings with no clear resolution timeline. Every month that passes, the money becomes harder to trace and recover.
Here’s the reality check nobody wants to hear: recovering your money from fraud takes years, if it happens at all. The legal system moves slowly, and fraudsters are often judgment-proof by the time cases conclude.
The Vicious Cycle Making Everything Worse
52 out of 62 mutual funds showing losses forces provisioning requirements that eliminate any possibility of declaring dividends. Bangladesh Bank’s BRPD circulars mandate specific reserve levels based on loan quality and investment risk.
No dividends trigger panic surrenders by investors who bought these funds specifically for regular income. Retirees depending on quarterly distributions suddenly face zero cash flow from assets they thought were stable.
Mass redemptions force fund liquidations at the worst possible market prices. When everyone rushes to exit simultaneously, fund managers must sell holdings into a falling market, crystallizing losses that might have recovered given time.
NAV erosion accelerates when everyone rushes for exits simultaneously. It’s like a financial stampede where the crowd itself crushes your portfolio underfoot, regardless of the underlying company fundamentals.
Your Money vs That Guaranteed 6.25% FD Everyone Keeps Mentioning
The Psychological Comfort of “Guaranteed” Returns
BRAC Bank, Dutch-Bangla Bank, and Eastern Bank are offering 6.25% to 6.5% fixed deposit rates currently. I see the temptation every time I visit a branch and watch customers confidently depositing lakhs into term accounts.
Zero market risk means zero sleepless nights. You know exactly what you’ll receive and when you’ll receive it. No checking DSEX index movements, no NAV anxiety, no wondering if tomorrow brings another scandal.
Tax implications differ significantly. FDs face 10% withholding tax at source, while ICB Unit Fund investments got their tax exemption reinstated after advocacy efforts. That difference matters when you’re calculating actual after-tax returns.
But here’s the uncomfortable truth: inflation running at 10.2% means both options are losing real purchasing power. Your 6.25% FD return looks safe, but you’re actually getting poorer by 3.95% annually after accounting for inflation’s silent wealth erosion.
When ICB Still Makes Sense Despite the Chaos
Long-term market recovery bets favor patient investors with genuine 3-5 year horizons who don’t need this money for life events. If you’re 28 years old and investing from surplus income, riding out the storm might pay off when the cycle turns.
Bangladesh Fund’s Tk200 crore FDR placement with Capital Market Stabilization Fund shows the liquidity support infrastructure exists at institutional level. The government isn’t abandoning ICB or the capital market completely.
Open-ended funds allow surrender anytime without suffering the FD’s early withdrawal penalty. If your circumstances change, you’re not locked in until maturity like term deposits.
The contrarian opportunity exists if you genuinely believe DSE recovery is coming. Markets bottom when pessimism peaks, and right now pessimism is at generational highs.
| Comparison Factor | Bank FD | ICB Unit Funds |
|---|---|---|
| Current return rate | 6.25-6.5% guaranteed | -14 to +5% variable |
| Risk level | Deposit insurance backed | Market-linked exposure |
| Liquidity | Lock-in period penalty | Surrender anytime possible |
| Tax treatment | 10% withholding tax | Exempted for now |
| Recovery potential | Fixed regardless of market | Could gain 20-40% if market recovers |
The Types of ICB Products Most People Mix Up
Open-ended funds like Bangladesh Fund and ICB Unit Funds operate with weekly NAV calculations based on current market values. You can enter or exit based on published prices, though surrender values may differ from sale prices depending on liquidity.
Closed-end mutual funds got hit hardest by market decline with severely limited exit options. These trade on stock exchanges like regular shares, subject to supply and demand pressures beyond the underlying portfolio value.
Margin loans represent high-risk leverage that can trigger forced sales during downturns. You’re borrowing against your securities to buy more securities, amplifying both gains and losses. When markets fall, margin calls arrive demanding immediate cash or liquidation.
ICB AMCL subsidiary funds versus direct ICB investments carry a crucial legal distinction. The subsidiary operates under different regulatory frameworks and balance sheet structures than the parent corporation.
What That Tk3,000 Crore Government Bailout Really Means
Bangladesh Bank’s loan with sovereign guarantee stabilizes ICB as an institution, not your individual fund directly. The money prevents systemic collapse but doesn’t magically restore portfolio values across retail investor accounts.
Tk1,000 crore got injected into “A” category stocks specifically for market stabilization operations. These are the highest-quality listed companies with strong fundamentals, reducing ICB’s risk exposure going forward.
Tk2,000 crore went toward repaying high-interest borrowings accumulated during crisis management. This reduces future interest expense bleeding, improving ICB’s path toward eventual profitability.
Government backing prevents institutional collapse but absolutely doesn’t guarantee investor profits. Your unit value depends on market performance, fund management quality, and broader economic conditions beyond bailout mechanics.
The IPO Drought That’s Starving the Entire Market
The Shocking Reality: Zero New Listings in 12 Months
The last IPO was Techno Drugs in June 2024, marking an unprecedented dry spell that veteran market participants can’t remember experiencing before. Twelve months without a single new company listing on Dhaka Stock Exchange represents a complete freezing of the capital formation pipeline.
DSE Director Richard D. Rozario stated publicly: “An IPO-less share market is unimaginable. It’s a huge loophole.”
Think about what that means practically. No new companies entering means no fresh investment alternatives for ordinary investors seeking to diversify beyond the same 350 companies that have been trading for years.
The liquidity crisis worsens exponentially when money can’t flow into new opportunities. Investors keep chasing the same stocks, creating artificial pressure on limited supply while good companies sit on the sidelines.
Why Good Companies Are Avoiding the Stock Market
The revised IPO policy remains stuck in regulatory delays at Bangladesh Securities and Exchange Commission for months. Companies prepare documentation, then wait endlessly for approvals that never materialize.
Lengthy approval processes combined with lack of meaningful incentives actively discourage quality listings. Why would a profitable company endure 18-24 months of regulatory scrutiny and disclosure requirements when bank loans and private equity offer faster, simpler capital?
BSEC’s focus on market discipline led to cancelled applications instead of approvals during the reform period. Regulators worried more about preventing another floor price disaster than facilitating healthy capital formation.
Floor price legacy and political instability killed investor confidence among potential issuers who watched existing shareholders lose fortunes during the July uprising aftermath and subsequent market turmoil.
What This Means for ICB’s Recovery Path
ICB’s profitability as an underwriter depends entirely on IPO pipeline revival. The institution earns fees from managing new issues, and those revenues vanished completely over the past year.
Market stabilization role becomes functionally impossible without new companies to invest in. How do you stabilize a market that has no fresh blood, no growth stories, no momentum beyond recycling the same distressed shares?
Stagnant market creates a doom loop: no IPOs means no confidence means companies avoid IPOs means continued stagnation. Breaking this cycle requires regulatory action beyond ICB’s control.
Expert consensus across the Bangladesh Securities and Exchange Commission, Bangladesh Bank, and Financial Institutions Division agrees: revised IPO policy implementation is absolutely critical for any meaningful turnaround.
How to Decide Your Next Move Without the Fear-Driven Mistakes
The Questions to Ask Before Doing Anything
What type of ICB product do you actually own: fund unit certificate, ICB stock share, or margin loan position? The answer dramatically changes your risk exposure and available options.
Can you genuinely afford to wait 2-3 years for potential market recovery without touching this money? Not theoretical patience, but real-world ability to leave funds untouched through weddings, medical emergencies, education expenses.
Do you need this money for specific life events in the next 12 months? My friend Rahim surrendered at a 25% loss because his daughter’s university admission required immediate cash. He made the right choice for his situation, despite the paper loss.
Is watching NAV fluctuations affecting your mental health and daily life decisions? There’s no shame in admitting that financial stress is destroying your sleep and relationships. Honor your limits rather than gutting through anxiety for theoretical future gains.
Reading Your Statements Like You’re Solving a Mystery
Net Asset Value calculation equals total fund assets minus liabilities divided by outstanding units. This basic formula reveals whether your fund is actually growing underlying wealth or just shuffling deck chairs.
Sale price versus surrender price spread reveals fund liquidity health currently. Wide spreads indicate the fund manager is struggling to convert holdings into cash without triggering losses.
Unrealized losses sitting in your portfolio don’t become real until you actually surrender and crystallize them. That’s simultaneously comforting and dangerous because paper losses can always get worse.
Dividend history patterns from past years mean absolutely nothing in this crisis environment. Consistent dividends over decades created false confidence that the future would mirror the past.
The Surrender Decision Framework Without Panic or FOMO
Calculate your exact loss at today’s NAV versus your original purchase price. Write it down. Staring at the actual number removes the emotional fog of “I think I’m down about 20%.”
Market recovery scenario requires DSE to achieve political stability plus new IPO pipeline activation simultaneously. Both conditions are necessary but neither is sufficient alone.
Tax implications of surrendering now versus holding through potential recovery can swing your effective return by several percentage points depending on your bracket and timing.
Partial surrender strategy offers middle ground: take out emergency cash for immediate needs, leave growth portion invested for potential recovery. You don’t have to make binary all-or-nothing decisions.
| Your Situation | Suggested Action | Key Reasoning |
|---|---|---|
| Need money within 6 months | Surrender fully now | Recovery timeline too uncertain |
| 2-5 year timeline, high tolerance | Hold or buy more | Contrarian opportunity if stable |
| Income-dependent retiree | Shift to FD/Sanchayapatra | Dividend drought not ending soon |
| Young investor, surplus funds | Hold current, don’t add more | Preserve dry powder for alternatives |
| Severe anxiety impacting life | Surrender enough to sleep | Mental health beats returns |
If You’re Somehow Considering New ICB Investment in 2025
The contrarian case exists: 20-25% portfolio value increase since FY25 end signals the absolute bottom might be behind us. Market sentiment shifted marginally after government stabilization measures became clear.
Which funds are showing resilience? Check official NAV disclosures on the ICB Asset Management website weekly rather than relying on outdated annual reports or Facebook speculation.
Due diligence checklist before investing a single taka: verify fund investment objective, understand asset allocation rules, review current provisioning levels against Bangladesh Bank requirements, confirm redemption procedures.
Only invest what you can completely forget about for 5 years minimum. Not “probably won’t need,” but genuinely surplus money that won’t create stress if it drops another 30% before recovering.
The Uncomfortable Truths About Risk and Reality
Myth 1: “Government-Backed Means My Profit Is Guaranteed”
ICB’s mandate is capital market development and stabilization, not personal investment guarantees for individual citizens. Those are fundamentally different objectives with different accountability structures.
Even stabilization funds face weak market realities when the entire ecosystem struggles. Government support prevents ICB from collapsing completely, but it can’t force stock prices higher or create returns from destroyed value.
Centre for Policy Dialogue researcher critique noted the “fallacy of the liquidity approach” when structural problems persist beyond mere cash injection.
Government guarantee on ICB’s Bangladesh Bank loan protects the institution’s solvency, not your unit certificate value. Your portfolio rises and falls with market performance regardless of sovereign backing.
Myth 2: “Liquidity Injection Will Fix Everything Soon”
Past fund injections raised serious questions about effectiveness during previous market crises in 2011 and 2018. Money provides temporary breathing room but rarely solves underlying confidence and governance problems.
Cash helps stabilize operations temporarily but confidence and structural reforms matter far more long-term. You can’t buy genuine investor trust with bailout money.
ICB’s 75% capital market instruments requirement means the institution legally can’t hide in safe government bonds waiting for storms to pass. The fund mandate forces continuous equity market exposure.
Weekly NAV recalculation prevents rumors or artificial price manipulation from hiding reality. The numbers must reflect actual market values, and lies get exposed every Friday.
The ICB Islamic Bank Cautionary Tale You Need to Know
ICB Islamic Bank operates as a completely separate entity from Investment Corporation of Bangladesh despite sharing the “ICB” brand name. This causes massive confusion among retail customers who assume shared financial health.
The bank accumulated Tk20 billion in losses with zero dividends paid for years despite the “Islamic” trust factor that attracts religiously-minded depositors.
Liquidity crises and legacy issues from predecessor Oriental Bank remain unresolved years after rebranding. Name changes don’t erase balance sheet problems.
Core lesson: shared brand names don’t mean shared financial health. Always verify institutions individually rather than assuming corporate family connections imply similar safety profiles.
Your Personal Safety Checklist Before Any Decision
Verify fund objectives, NAV calculation methods, and price sources on the official icbamcl.gov.bd pages only. Screenshots from WhatsApp groups and Facebook expert recommendations are worthless.
Track sale price versus surrender price spread changes weekly to spot liquidity problems early before they cascade into full crisis. Widening spreads are your canary in the coal mine.
Never invest money needed for life events within your actual time horizon. Not your estimated timeline, but the hard deadlines when tuition is due or medical procedures must happen.
Read fund disclosure documents yourself rather than relying on broker summaries or friend recommendations. The boring legal text contains the details that matter when things go wrong.
Alternative Paths If ICB Doesn’t Fit Your Reality
Beyond the FD-or-Nothing False Choice
Sanchayapatra offers government-backed returns higher than FDs with superior tax treatment for specific demographics. Five-year Bangladesh Sanchayapatra currently yields around 11.52% for general investors.
Diversified equity investing through your own BO account portfolio with direct stock purchases eliminates fund management fees and gives you control over entry/exit timing.
Corporate bonds from stable companies like Grameenphone, BRAC Bank, or Square Pharmaceuticals provide fixed income without commercial bank or mutual fund intermediaries taking cuts.
Balanced approach splits savings across multiple instruments matching different goals: FD for emergency fund, equity for growth, bonds for income, Sanchayapatra for guaranteed returns.
| Alternative | Current Return | Risk Level | Liquidity | Best For |
|---|---|---|---|---|
| Bank FD | 6.25-6.5% | Very Low | Moderate | Emergency reserves |
| Sanchayapatra | 11.52% (5yr) | Very Low | Low | Retirement income |
| Corporate Bonds | 8-10% | Low-Moderate | Low | Income seekers |
| Direct Stocks | Variable | High | High | Growth investors |
| DPS | 6-7% | Very Low | Very Low | Disciplined savers |
The DPS Middle Ground for Anxious Investors
Monthly deposit schemes from major banks offer predictable 6-7% growth without lump-sum commitment anxiety. You build wealth gradually rather than betting everything at once.
Lower psychological commitment compared to FD lump sums or volatile mutual fund unit purchases makes DPS accessible for conservative personalities.
Building emergency fund separately through DPS while exploring riskier investments with surplus income creates proper risk-layered portfolio architecture.
BRAC Bank, Dutch-Bangla Bank, and City Bank DPS rates remain competitive in the current 2025 environment, with some offering loyalty bonuses for long-term participants.
Understanding Your Actual Risk Capacity Honestly
Age and earning years remaining create different capacity constraints. A 25-year-old software engineer can wait through a 5-year bear market and still have 35 years to accumulate wealth. A 55-year-old nearing retirement cannot.
Family financial obligations affect how much portfolio volatility you can stomach psychologically. Supporting aging parents, funding children’s education, or managing medical expenses consume mental bandwidth that makes investment stress unbearable.
The gap between financial capacity and emotional tolerance is where most investment mistakes happen. You might afford to lose 30% mathematically but can’t handle it mentally without affecting your work and relationships.
Personalized allocation based on your real life beats generic investment textbook formulas every time. Custom-fit clothes work better than one-size-fits-all, and portfolio construction follows the same principle.
What Happens Next: The Recovery Wildcards
The Market Signals You Should Actually Watch
New company listings announced by Bangladesh Securities and Exchange Commission serve as the pipeline revival indicator. Watch the BSEC website for IPO approvals rather than waiting for newspaper coverage.
Political stability continuation affects investor confidence and trading volumes far more than any technical factor. Markets hate uncertainty above everything else.
Bangladesh Bank monetary policy changes impacting interest rates and liquidity flows ripple through equity valuations systematically. Rate cuts boost stocks while hikes crush them.
Regulatory reforms on provisioning requirements could ease fund dividend pressure if Bangladesh Bank adjusts BRPD circulars to reflect new market realities.
ICB’s Own Survival Plan You Should Monitor
High-level committee formed specifically to manage the Tk3,000 crore Bangladesh Bank loan usage and ensure funds deploy toward highest-impact stabilization operations.
Shift to “A” category stocks only represents less risky investment strategy going forward. ICB learned painful lessons about speculation in lower-quality securities.
ICB Capital Management and ICB Asset Management subsidiary restructuring efforts continue behind the scenes with no public timeline.
Realistic timeline for “return to previous position” ranges from 3-5 years minimum under best-case scenarios. Anyone promising faster recovery is either lying or delusional.
Signs That Should Make You Cut Losses and Move On
Your fund appears in bottom performers with 30% portfolio erosion and no recovery signs visible in quarterly disclosures. Weak funds rarely become strong funds during bear markets.
You need liquidity within next 12 months for major life expenses like weddings, medical procedures, education, or home down payments. Paper losses become irrelevant when you need cash.
Market volatility stress affects your sleep quality, relationships, or work performance. No investment return justifies destroying your health and family peace.
Alternative investments better match your actual risk tolerance after honest self-assessment. Admitting you’re a conservative investor after trying to be aggressive isn’t failure, it’s wisdom.
The Bigger Picture: What ICB Reveals About Our Market
ICB’s struggles reflect broader Bangladesh capital market dysfunction beyond simple mismanagement or bad luck. The system itself has structural problems requiring policy-level reforms.
Floor price legacy effects continue suppressing natural price discovery even after official removal. Market participants remember the intervention and adjust behavior accordingly.
Retail versus institutional investor participation gap widens during every crisis. Small investors panic sell while institutions and insiders accumulate at bottom prices.
July uprising aftermath on economic stability keeps rippling through the financial sector months later. Political transitions create extended uncertainty that capital markets absolutely hate.
Conclusion
We started with that sinking feeling, watching ICB’s historic Tk1,213 crore loss destroy the “government guarantee” myth your parents believed in for decades. We walked through the embezzlement scandals that stole Tk148 crore from real investors, the Tk920 crore frozen in failing banks that may never return, the 52 mutual funds bleeding value while dividend payments stopped completely, and that tempting 6.25% FD your neighbor won’t stop mentioning at every family gathering.
Here’s the resolution nobody wants to hear but everyone needs to understand: ICB’s survival as an institution is almost certain because Bangladesh needs capital market infrastructure and the government won’t let it collapse completely. Yet your individual fund’s recovery is not guaranteed at all. Market cycles eventually turn, but timing remains unknown and your personal timeline might not align with market timing.
The smartest move isn’t blindly buying more units or panic surrendering everything today. It’s making one clear, informed decision this week based on your actual situation rather than fear or herd mentality. Open icbamcl.gov.bd right now, navigate to fund performance section, find your specific fund’s current NAV, and write down three critical numbers: your original purchase price, today’s surrender value, and your personal deadline for needing this money. Once those numbers sit in front of you on paper instead of swirling anxiously in your mind, the fear loses its paralytic grip and your decision starts feeling like yours again.
Whether you stay invested hoping for 3-5 year recovery or surrender tomorrow to sleep soundly in guaranteed FDs, make it a choice you can explain to yourself six months from now without regret. Your financial peace matters more than any expert’s opinion, including mine.
Investment Corporation of BD (FAQs)
What is Investment Corporation of Bangladesh and its main functions?
Yes, ICB is Bangladesh’s sole state-owned investment bank established in 1976. It develops capital markets by managing mutual funds, providing margin loans, underwriting new issues, stabilizing stock prices during crashes, and offering portfolio management services to institutional and retail investors through its three subsidiaries.
How to open an account with ICB for unit fund investment?
Yes, you can open an account directly. Visit any ICB branch with your National ID, recent passport photo, and minimum Tk1,000 investment amount. Fill the account opening form, receive your unit certificate, and access your portfolio through the official ICB website using provided login credentials.
What are the tax benefits of investing in ICB mutual funds?
Yes, ICB Unit Fund investments currently enjoy tax exemption on returns. Unlike bank FDs that deduct 10% withholding tax at source, ICB unit certificate holders receive full dividend amounts without tax deductions, significantly improving after-tax returns for investors in higher income brackets.
Is ICB a safe investment option considering recent losses?
No, ICB is not risk-free despite government backing. The Tk1,213 crore FY25 loss, 52 failing mutual funds, and frozen Tk920 crore in liquidating NBFIs prove that government ownership protects the institution from collapse but absolutely does not guarantee individual investor returns or capital preservation.
What is the difference between ICB unit funds and regular mutual funds?
ICB unit funds are open-ended government-backed schemes allowing weekly subscription and redemption at NAV-based prices, while regular mutual funds include both open and closed-end structures. ICB offers tax exemptions and perceived government safety but faces the same market risks as private sector funds, sometimes with worse performance during crises.