Investit Asset Management, a fund manager, has taken an initiative to launch its first open-ended mutual fund named Investit Growth Fund. The signing ceremony of the new mutual fund took place at its office in the capital yesterday.

Key officials from both Investit Asset Management and Sandhani Life Insurance were present, including Mohammad Emran Hasan, Managing Director and CEO of the asset management company, Nemai Kumar Saha, CEO of Sandhani Life Insurance, and Md Mizanur Rahman, company secretary to the insurer.

Investit Asset Management will serve as both the sponsor and asset manager of the mutual fund, Sandhani Life Insurance the trustee and BRAC Bank PLC the custodian, the asset manager said in a press release.

Mutual funds pool money from investors to channel it into securities such as stocks, bonds, and other assets. Depending on the profits earned, investors are then paid their share as dividends.

Open-ended mutual funds are not listed with the stock market, but one can buy them from a fund manager's office on the basis of its net asset value. Similarly, investors can sell off fund units at any time at prices based on its current net asset value.

The initial size of the fund of Investit is Tk 25 crore, with the sponsor contributing Tk 2.5 crore and the remaining Tk 22.5 crore coming from individual and institutional investors.

This new fund is designed to provide investors with superior risk-adjusted returns through a focused investment strategy in growth stocks, said the statement.

The fund's size may be increased in the future with the trustee's approval.

Mohammad Emran Hasan, said he wants to make this a signature fund for the company, as it represents a new chapter in its growth.

"We're dedicated to providing our investors with exceptional risk-adjusted returns, guided by principles of integrity and rigorous research," he said.