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How to Invest in a Mutual Fund in Bangladesh: A Step-by-Step Guide for First-Time Investors

Last Updated: 18 August, 2026

Investing in a mutual fund in Bangladesh is simpler than most people assume. The process — from opening the right account to making your first investment — can be completed in a few working days, and once set up, requires very little ongoing effort.

This guide explains each step clearly. Whether you are investing a lump sum or starting a Systematic Investment Plan (SIP) from BDT 1,000 per month, the process is the same. 

What is a Mutual Fund? (A Quick Primer)

A mutual fund is a pooled investment vehicle managed by a professional asset management company (AMC). When you invest in a mutual fund, you purchase units of the fund — each unit represents a proportional share of the fund's total portfolio.

The fund manager invests the pooled capital across a diversified portfolio of shares, bonds, government securities, and other permitted instruments, depending on the fund's stated mandate. The value of your units — called the Net Asset Value (NAV) — rises and falls with the underlying portfolio.

In Bangladesh, all mutual funds are regulated by the Bangladesh Securities and Exchange Commission (BSEC). Open-end mutual funds — the type offered by EDGE AMC — allow you to invest and redeem at the prevailing NAV on any working day.

The key difference between open-end and closed-end mutual funds: open-end funds can be purchased directly from the AMC at NAV, and redeemed directly at NAV. Closed-end funds are traded on the stock exchange, and their market price may differ from NAV.

To learn more about the different types of funds, take a look at this article. 

What You Will Need Before You Start

To invest in any mutual fund in Bangladesh — including EDGE funds — you will need three things:

1. A National Identity Card

Your NID is required for KYC (Know Your Customer) verification. Smart card, old laminated card, or the online NID print from the Election Commission website are all accepted.

2. A BO Account (Beneficiary Owner Account)

A BO account is a dematerialised securities account held at CDBL (Central Depository Bangladesh Limited). Mutual fund units in Bangladesh are held electronically in your BO account — there are no physical unit certificates.

To open a BO account, you apply through any CDBL-registered brokerage firm (also called a Depository Participant or DP). Most brokerages allow you to open a BO account online in 1–3 working days. You will need your NID and a passport-sized photograph.

If you already have a BO account from trading shares, you can use the same account for mutual fund investments.

To learn more about BO Accounts, take a look at this article. 

3. A Bank Account

You will need a bank account in your own name for dividend payments, redemption proceeds, and for setting up SIP auto-debits via BEFTN (Bangladesh Electronic Funds Transfer Network). Mobile banking accounts (bKash, Nagad) are not currently accepted for mutual fund investments — a standard bank account is required.

You do not need a CDBL BPID or a broker trading account to invest in a mutual fund — just a BO account. Opening a BO account does not mean you have to trade stocks.

Step-by-Step: How to Invest in an EDGE Mutual Fund

Step 1

Choose the right fund for your goals

EDGE AMC manages four open-end mutual funds, each with a different risk profile and investment mandate:

• EDGE Bangladesh Mutual Fund (EDGEBDMF): A balanced fund investing in equities, bonds, and IPOs. Suitable for investors with a low-to-moderate risk appetite and a medium-term horizon of 2–5 years.
• EDGE AMC Growth Fund (EDGEAMCGF): An equity-focused fund for investors with a 3–5+ year horizon and comfort with short-term market volatility. Historically the highest-returning EDGE fund.
• EDGE High Quality Income Fund (EDGEHQIF): A fixed income fund investing in government securities, bonds, and FDRs from high-quality banks. The lowest-risk EDGE fund — suitable as a bank FDR alternative.
• EDGE Al-Amin Shariah Consumer Fund (EDGEALAMIN): A Shariah-compliant equity fund with a consumer sector focus, supervised by a Shariah Advisory Committee. Suitable for investors seeking halal investment options.

Not sure which fund to choose? Use our Fund Selector, or compare all four funds side by side at this link.

Step 2

Register online at edgeamc.app

Visit edgeamc.app and click "Register" to create your investor account. You will be asked to provide:

• Your full name as it appears on your NID
• Your NID number
• Your BO account number (16-digit number on your BO account statement)
• Your bank account details (account number, bank name, branch, routing number)
• Your mobile number and email address

Once your registration is submitted, EDGE AMC's team will verify your KYC documents. This typically takes 1–2 working days. You will receive a confirmation by email and SMS once your account is active.

Step 3

Make your first investment

Once your account is verified, log in to edgeamc.app and select the fund you want to invest in. You can invest in two ways:

• Lump sum investment: A one-time investment of the amount you choose. The minimum lump sum for individual investors is BDT 5,000 per fund.
• Systematic Investment Plan (SIP): A fixed monthly investment deducted automatically from your bank account via BEFTN. The minimum SIP amount is BDT 1,000 per month. You set the date, the amount, and the fund — and the deduction happens automatically each month.

Your investment will be processed at the NAV prevailing on the date your payment is received and verified. You will receive a unit allocation confirmation. To learn more about SIP vs lump sum, take a look at this article. 

Step 4

Set up your SIP (recommended)

If you are investing via SIP, you will need to complete a BEFTN mandate form authorising your bank to deduct your monthly SIP amount. Download the SIP form from edgeamc.com/mutual-fund, complete it, and submit it to your bank.

Once the mandate is in place, your SIP runs automatically. You do not need to log in or initiate each month's investment — it happens on your chosen date every month.

Step 5

Monitor your investment

You can check your portfolio, view your unit holdings, and track NAV performance at any time by logging in to edgeamc.app. NAV prices for all EDGE funds are also published daily on edgeamc.com/nav.

Frequently Asked Questions

Q: What is NAV and how is it calculated?

A: NAV stands for Net Asset Value. It is the per-unit price of a mutual fund, calculated by dividing the total market value of the fund's assets (minus liabilities) by the number of units outstanding. NAV is calculated and published after the market closes each trading day. When you invest in a mutual fund, you buy units at the prevailing NAV. When you redeem, you sell units at the NAV on the date your redemption is processed.

Q: Are there any fees or charges?

A: EDGE funds charge an annual management fee (included in the NAV — you do not pay it separately) and a small exit load if you redeem within the first year. There is no entry load (no charge when you buy units). Full fee details are in the prospectus of each fund, available at edgeamc.com/publications.

Q: Can I invest in multiple funds at the same time?

A: Yes. You can invest in any combination of EDGE funds using the same investor account. Many investors choose to hold a core position in a fixed income fund (EDGEHQIF) for stability alongside a position in an equity fund (EDGEBDMF or EDGEAMCGF) for growth.

Q: How do I redeem my investment?

A: Log in to edgeamc.app and submit a redemption request for the number of units or the amount you wish to withdraw. Redemption proceeds are transferred to your registered bank account via BEFTN, typically within 3–5 working days.

Q: Is my investment eligible for a tax rebate?

A: Yes. Investments in EDGE AMC's BSEC-approved mutual funds are eligible for a 10% tax rebate on the invested amount under Bangladesh's Income Tax Act, up to BDT 75 lakh per year. Use our Tax Rebate Calculator to estimate your savings.

Summary: What You Need to Start

Requirement	Details
NID	Smart card, laminated card, or online print — all accepted
BO Account	Open through any CDBL-registered broker in 1–3 working days
Bank Account	Any scheduled bank account in your own name
Minimum investment	BDT 5,000 lump sum or BDT 1,000/month via SIP
Registration	Online at edgeamc.app — takes approximately 15 minutes
Processing time	1–2 working days for KYC verification after registration

 

Links

• Compare All EDGE Funds
• SIP Calculator
• SIP vs. Lump Sum
• Choosing the Right Mutual Fund
• EDGE FAQ

Disclaimer: Investments are subjected to market risk. Past performance is not an indicator of future performance. This article is general information and does not constitute investment, legal, or tax advice for any specific fund. Trustee boards should obtain independent professional advice regarding their own circumstances and statutory obligations.