The Bangladesh economy has now shifted into high growth trajectory, with annual GDP growth rates exceeding 7% threshold as Bangladesh transitions to a middle-income country by 2021. Goldman Sachs has included Bangladesh in the Next 11 (N11) group of economies with high growth potential. PriceWaterhouseCoopers has forecast the Bangladesh economy to be among the top three fastest growing economies leading up to 2050. With a fast growing domestic consumer base, one of the most favourable demographic profiles in Asia and a booming manufacturing industry, there are ample opportunities for companies to leverage Bangladesh’s growth. This, in turn, presents a unique opportunity for investors to take advantage of the growth via the capital market.
After the stock market debacle of 2010/11 several developments including regulatory reforms have taken place in the capital market of Bangladesh. After a few years of consolidation and correction in valuations the market seems investable as quite a few sectors are offering higher growth prospects. An influx of professional research analysts as well as an increase of professionally managed funds has reduced the practice of rumour-based short-term speculation and overall volatility. Consequentially, the contribution of Mutual funds in terms of total market capitalization is on the rise. Indeed, Mutual Funds which are managed by professional fund managers backed up by skilled research analysts stands as a promising investment vehicle for investors to invest and take advantage of the growth potential of Bangladesh.