An Internship Report on Overview of Investment Corporation of Bangladesh and its Mutual Funds

Posted on 27th Oct 2024 01:42:42 AM Accounting and Information Systems


1.1 Introduction

Internship means practical training through attending the particular work in the related field. Practical training means a way through which a person or a trainee can gather experience about the related subject practically and be able to apply his theoretical knowledge in the field of real life action. Practical training also pave the way for gaining practical knowledge through activities other than reading textbooks and attending formal academic courses. Practical training is necessary to achieve complete knowledge about something. Internship program is actually a form of practical training. I confidently believe that practical training can open the inner eyes of a man. The works conducted during the Internship Program will expand the horizon of our practical knowledge.

Internship is an academic requirement for the students of MBA of the Department of Accounting & Information Systems. For every student the internship is required to work in a selected institution to enhance his practical Knowledge. The internship is managed and supervised by a supervisor who is a teacher of the department.

For my internship, I was sent to the Investment Corporation of Bangladesh (ICB), Rajshahi Branch under the supervision of XYZ, Professor, Department of Accounting & Information Systems, University of Rajshahi. As a Accounting student I specially like to work with any Financial Institution which is related to Capital Market. In this point of view ICB is the pioneer in the Capital Market of Bangladesh.

So my Honorable Supervisor selected the ICB for Internship Program. My topic was "An Overview of Investment Corporation of Bangladesh and its Mutual Funds.” I have done my internship in ICB from 18.12.2006 to 27.12.2006, on seven working days.

1.2 Objectives of Internship

The objective of Internship Program is to gather practical experience and comply with MBA academic curriculum. To understand the functions of ICB in the Capital Market, mobilization of savings, Investment for industrialization and its Mutual Funds. The Internship Program is going on the following objectives:

1) To know complete scenario of ICB as a pioneer Financial Institution in Bangladesh.

2) To get practical experience as a financial analyst.

3) To evaluate the Mutual Funds of ICB.

4) To apply my theoretical knowledge in the practical world.

5) To gather knowledge about Corporate Culture.

6) To prepare myself for the future challenges of modern business world.

1.3 Importance of Internship

Internship prepares the trainee for the tough job conditions and future challenges of business activities. The trainee learns how to adopt himself in situations quickly and how to work in a team environment. Internship increases the interpersonal communicative skill of the trainee as it opens in front of him a panorama towards the functioning of corporate institutions. In addition internship helps a trainee to fulfill his practical knowledge and makes him fit for important jobs.

The development of capital market and mutual funds is a pre-condition of the economic development of a country. For rapid industrialization a developed capital market is essential especially the share market. Through share market the savings of small savers can be mobilized and channeled into the productive sectors.

ICB as an Investment institution plays an important role for developing the capital market of Bangladesh by providing financial assistance to projects and by its merchandising operations. ICB by its operations has been able to revitalize stock exchange. At the time of the establishment of ICB only nine companies were enlisted with the Dhaka Stock Exchange. Now there are about 277 enlisted companies that are assisted by ICB.

This study goes through to examine the role of ICB in the Capital Market and its Mutual Funds. From this study we observed the overall activities of ICB and its Mutual Funds. I hope that this study will be helpful for the people who are associated with investment banking as professional, entrepreneur, Investors who are related to capital market, researchers and the students of Accounting & Information Systems.

Methodological Issues

1.4 Background of the study

This report has been prepared to serve the purpose of “Internship Report” for the MBA program of the assigned student in the department of Accounting & Information Systems, University of Rajshahi.

I was assigned for Seven days internship program by the department. The selected organization was Investment Corporation of Bangladesh (ICB), Rajshahi Branch. The concerned authority in ICB assigned me to go to the various departments of the Corporation to get an overview of its organizational structure and the activities.

ICB is an investment company which is formed and operated by the Government of Bangladesh. This organization plays an important role in the country’s capital market. It also offers asset management and merchant banking services. This report has covered the area of overall activities and mutual funds of the organization. This report is titled as “An Overview of ICB and its Mutual Funds.”

1.5 Scope of the study

As it has been mentioned earlier, the main focus of the study goes upon Mutual Funds of Investment Corporation of Bangladesh. The report gives an overview of ICB followed by a chapter on overall activities and its mutual funds of ICB, that the report establishes the theoretical and conceptual framework comparing with which the financial performance of ICB will be judged. There is one elaborate chapter on the mutual funds analysis of ICB. This study will also present some problems of ICB observed during the internship period and will suggest some internship possible remedy of those problems.

1.6 Methodology of the Study

The major objective of the study is to examine the Mutual Funds of ICB and to observe the overall activities of ICB. In this study, calculations and decisions have been made based on past experiences and the available data of past activities. The following methodology is used to complete this study:

1.6.1 Data Collection

This study is based on both primary and secondary data. Primary data were collected through face to face interviews with the corporation of executives, departmental Heads or their approved officials who gave briefs about their respective departments. Information gathered from these sessions has been used in this report. 

On the other hand secondary data were collected from annual reports and published documents of ICB and web site of the company (www.icb.gov.bd). In this study we have used three years data from 2002 to 2006. These data can be collected in any one or more of the following ways:

a) Personal Interview: This is the most effective way of collecting information about any organization. Through this process the trainees can confront the responsible officials of the selected organization and interviewed them. Through this interview he gets the necessary information. I interviewed some departmental officials especially those related to the financial operations of ICB.

b) Briefing Sessions: In case of corporate organizations this method is useful. The different department chiefs brief the trainees. Through these Briefing Sessions the trainees collect the necessary information about the different segments of the institution.

c) By observation: Through this process data is collected by ways of investigators own observation without interviewing anybody. It is a costly process and through this process the observer gets limited information. 

1.6.2 Study period

I have taken a seven days internship program from 18.12.2006 to 27.12.2006. In this time I have used five years data for my analysis from 2002 to 2006.

1.6.3 Selection of the sample

The sample area of this study covers the Branch office of ICB, Rajshahi. Since the branch mutual funds activities are done under the surveillance of the head office of ICB the selection of sample of this study is justifiable. ICB as a national investment institution has added a huge tempo in developing the capital market of Bangladesh. As a result of this importance the selection of ICB as the sample area of this study is presumably the demand of the time.

1.6.4 Time schemes

I have completed my seven days internship in the Branch office of ICB, Rajshahi. My internship is completed from 18 December, 2006 to 27 December, 2006. During the span of Seven days I visited the different departments and subsidiary companies of ICB as depicted in the following Table:

Name of the departments visited along with date of visit

SL No. Name of the departments From Up to
1 Managerial Body 18.12.06 19.12.06
2 Accounts Department 20.12.06 -
3 Investor Scheme 21.12.06  
4 ICB Capital Management Ltd. 24.12.06  
5 ICB Securities Trading Company Ltd. 26.12.06 27.12.06

 

1.6.5 Technique of data analysis

A number of financial and statistical tools are used for analysis purpose. Here mainly we analyze the overall all activities of ICB and its mutual funds measuring the contribution in Capital Market. The following financial and statistical tools are used to analyze the data.

1.6.6 Financial Tools

For the analysis of the mutual funds  of ICB, I have used Ratio Analysis as a tool. ICB is not a production oriented company, so all the ratios are not applicable for the mutual funds analysis. The following are of importance in the study:  

a. Net profit to total income (%)

b. Return on total investment (%)

c. Return on equity (%)

d. Earnings per share (TK.)

e. Book value per share (TK.)

f. Dividend yield (%)

g. Dividend payout Ratio (%)

h. Price Earnings Ratio (Times)

i. Current Ratio 

j. Debt Ratio

k. Portfolio Position

1.6.7 Statistical Tools

The following statistical tools are used to analyze the data:

a. Mean or Average

b. Correlation 

c. Growth rate

d. Chart method.

1.6.8 Computer Programmed Use

Most commonly used statistical and financial package that are used in computer for data analysis, such as:

1. Ms Excel

2. SPSS 

1.7 Limitations of this Study

Limitations are obvious in any study so do here. Since this is an internship report, the limitations regarding the internship program has acted as the limitations of the study. Among others the main limitations are:

· For this study purpose my sample area is a branch office of ICB but the branch office do not maintain the complete Mutual Funds Analysis. 

· I had to go to almost every Department of ICB as part of the internship program. Seven days is a very short span of time to get in-depth knowledge about a massive organization like ICB

· Officials of ICB maintain a very busy schedule. So they were not always able to provide enough time to enlighten the intern students every time, even if they had the intention to do so. 

· The area covered by the report “An overview of ICB and its Mutual Funds” concerns a huge number of activities, and it is very difficult to sketch a total picture of the financial activities in a report of this scale.

 

Contact us to read the full 'Internship Report' internshipreport12@gmail.com



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