The number of mutual funds that were professionally managed is on the rise. Consequently, the importance of evaluating the performance of mutual funds has also increased. Investors prefer investing in such stocks that have performed better compared to other alternatives since investors always like to choose fund managers on a comparative basis. This study has endeavoured to address this issue by measuring the performance of mutual funds managed by ICB (Investment Corporation of Bangladesh) through Treynor Index, Sharpe Index, Jensen Alpha, and Fama Decomposition. This study has found that the performance of ICB mutual funds is satisfactory in the context of mutual funds sector of Bangladesh. However, there remain several shortcomings in managing the portfolios by the portfolio managers of ICB. Much of the underperformance of ICB mutual funds is attributable to the bureaucratic systems and structural rigidity of ICB.