Discuss the roles of key players in the ‘Mutual Fund’ market.
Answers
KEY PLAYERS IN A MUTUAL FUND
A mutual fund is set up either in the form of a trust or an investment company. The trust is established by the Asset Management Company (AMC). The trustee holds the property of the trust for the benefit of its unit holders. Whereas, under the investment company structure, the mutual fund is established as a public listed company. The AMC, as sponsor of the mutual fund, appoints its board of directors to manage its affairs, and a custodian for holding all the assets of the investment company. An AMC is licensed by the SECP and is eligible to operate the mutual fund and manage its investments.
Answer:
A mutual fund is set up either in the form of a trust or an investment company. The AMC, as sponsor of the mutual fund, appoints its board of directors to manage its affairs, and a custodian for holding all the assets of the investment company. ...