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What is the cost of ICB unit certificate?

Published in Mutual Fund Pricing 2 mins read

The repurchase price of an ICB Unit Certificate is fixed at Tk 271.00. This figure represents the price at which the ICB Unit Fund is prepared to buy back its unit certificates from investors.

Understanding ICB Unit Certificate Value

When considering the "cost" of an ICB Unit Certificate, it's important to distinguish between the price at which units are repurchased by the fund and the price at which new units might be issued. The provided information specifically states the repurchase price.

Key Financial Information

The latest financial details available indicate the following for ICB Unit Certificates, effective from September 15, 2024:

Metric Value Description
Repurchase Price Tk 271.00 The price at which ICB Unit Fund will buy back each unit certificate.
Dividend Rate (FY 2023-2024) Tk 35.00 Dividend declared per ICB Unit (with a face value of Tk 100.00).

What the Repurchase Price Means for Investors

The repurchase price is a crucial indicator for unitholders as it reflects the value at which they can liquidate their investment by selling their units back to the fund. For open-ended mutual funds like the ICB Unit Fund, this price is often closely related to the Net Asset Value (NAV) per unit.

Fund Operations Overview

The ICB Unit Fund aims to provide returns to its unitholders through dividends and potential capital appreciation. The declaration of dividends, such as the Tk 35.00 per unit for the financial year 2023-2024, signifies the fund's profitability and its distribution policy. These financial decisions are typically made during fund-related meetings, ensuring transparency and adherence to regulatory guidelines.