Parties Involved

  • Investors – Who have savings for investment and are looking for proper investment channel
  • Sponsor – Is a person who sets up a mutual fund and sets up a trust after executing trust deed. Sponsor contributes to the initial capital of the trust and appoints the board of trustees. It also appoints asset management company (AMC) and contributes minimum of  40% of net worth of AMC

  • Trustees – Are appointed by the sponsor with the approval of regulator. At least two- third trustees must be independent. Trustees have a FIDUCIARY responsibility toward unit holders and they receive fees for their service
  • Asset Management Company – AMC is the Fund Manager for floating and managing different mutual fund schemes. AMC is accountable to the trustees and charges asset management fees subject to ceiling prescribed by regulator
  • Custodian/ Depository – They are appointed by Board of Trustees and keep record of securities/investments. Custodian/Depository Participant are registered with regulator
  • Registrar and Transfer Agent – They issue, redeem, transfer units of mutual fund schemes and keep investor’s account up to date. Registrar and Transfer Agent are registered with regulator

Leave a Comment

Your email address will not be published. Required fields are marked *