What are the constituents of a Mutual Fund?
A Mutual Fund comprises of the following entities: • Fund Sponsor: Similar to a company promoter, holds minimum 40% stake in the AMC and appoints trustees, AMC as per SEBI regulations. • Trustees: They ensure protection of the investors and that all regulations are complied by the AMC and submit reports with their observations to the investors annually and to SEBI half-yearly. • Asset Management Company: It is a company appointed to professionally manage the Fund’s money to give good returns. • Custodian: Involved in safe-keeping of securities, collecting income and distributing dividends. • Registrar and Transfer Agent: They are responsible for investor servicing functions like maintaining the records of investors in mutual funds, processing applications, issuing and redeeming unit-holders, etc. They are appointed by the Mutual Fund sponsor. Many Mutual Funds carry out this task themselves. • Distributors: They look after the function of selling various mutual funds and providing fina
Related Questions
- What other funds in the current plan lineup are closed to new investors? Will any of the closed funds be available to participants who invest in the new self-directed mutual fund window?
- What if my clients want to sell a portion of their pledged Franklin Templeton mutual fund shares?
- What is the difference between a mutual fund and a stock?
