ICB

Today i saw a interney report of ICB.There i saw that all ICB fund were formed before 2001.And So they will not be under SEC new rule.For them the ordinance of 1993(may be 1994) will be applicable.This new rule will be applicable for grameen1 and aims,i think.

Again lets assume new rule is applicable for ICB.Then come to an analysis.
When a MF is expanded what happens?More cash comes and the manager buys some stock with high price which he has in low price.The efficiency and rate of return decreases.Look at 7th icb.ITs HY income is 127tk and we can assume it around 250tk.IF they give bonus it will quick jump but in the long run their EPS will decreases.But In case of cash divident there price and EPS will not decrease.For an investment it is good.
If they 80% of their income then divident comes to 200% cash.If they declare it what will be its price?Now in this market we see the divident yield is around 5.If we take yield as 7its price will be 2857tk and if we consider it as 5 its price will be 4000tk.
If you but 7th icb at 1800tk and get 200%cash what will your yield?about 11.11%.Is it not a good divident?

Just keep the icb as your FDR.Not sale it considering [color=#FF0040]heavy[/color] loss.But if u want to get low profit and 5 or 6% loss you can come out from it.But For long term investment i will collect it more at low price.
Thanks.