Despite DSEX delivering a disappointing return of -16.44% in 2024, growth mutual funds, primarily focused on the equity market, managed to outperform significantly. This raises an interesting question. How did they achieve positive returns in a declining market?
To uncover the secret, we need to explore the sectors these funds heavily invested in throughout 2024.
Green Delta Dragon Enhanced Blue Chip GF
Launched in 2023, this is one of the newest growth funds in Bangladesh. Despite the challenging market conditions in 2024, the fund achieved an impressive return of 6.02%. Here's where it focused its investments as of December 31, 2024:
EDGE AMC Growth Fund
EDGE AMC's growth fund, launched in September 2019, has built a reputation for steady performance. In 2024, it maintained its momentum, generating a commendable return of 3.76% despite market headwinds. Here’s a snapshot of its investment focus as of September 30, 2024:
VIPB Growth Fund
The VIPB Growth Fund has been a trusted name in the market since its launch in April 2018. With years of experience and a solid reputation, the fund delivered a decent return of 2.08% in 2024. As of September 30, 2024, these were its key investment areas.
UCB AML First Mutual Fund
Starting its journey in April, 2021 here’s how the fund allocated its investments by the end of September 30, 2024.
IDLC Growth Fund
IDLC is one of the most prominent names in the finance industry of Bangladesh. Here’s a closer look at its investment priorities as of September 30, 2024.
CWT Emerging Bangladesh First Growth Fund
The objective of the CWT Emerging Bangladesh First Growth Fund is to generate growth of capital with a secondary objective of current income through optimizing asset allocation. Here’s where the fund concentrated its investments at the end of September 30, 2024.
Starting its journey in September, 2020, The fund’s sector allocation as of September 30, 2024, paints the following picture:
After analyzing these notable growth funds, a common trend can be identified.
Pharmaceuticals and Banks are the most prominent holdings in every mutual fund. These two sectors predominantly make up (30-70)% of every fund.
Brac Bank and Square Pharmaceuticals are the two most notable holdings in these two sectors.
To see the top shareholdings of every mutual fund, click here.