Who Manages the Money in MF (Mutual Funds) ?
Investorline This is the role of the Asset Management Company (the Third tier). Trustees appoint the Asset Management Company (AMC), to manage investor’s money. The AMC in return charges a fee…
Who is a Custodian?
A custodian’s role is safe keeping of physical securities and also keeping a tab on the corporate actions like rights, bonus and dividends declared by the companies in which the…
What is the role of the AMC?
The role of the AMC is to manage investor’s money on a day to day basis. Thus it is imperative that people with the highest integrity are involved with this…
What is an NFO?
Once the 3 – tier structure is in place, the AMC launches new schemes, under the name of the Trust, after getting approval from the Trustees and SEBI. The launch…
What is the role of a Registrar and Transfer Agents?
Registrars and Transfer Agents (RTAs) perform the important role of maintaining investor records. All the New Fund Offer (NFO) forms, redemption forms (i.e. when an investor wants to exit from…
What is the procedure for investing in an NFO?
The investor has to fill a form, which is available with the distributor. The investor must read the Offer Document (OD) before investing in a mutual fund scheme. In case…
What are the investor’s rights and obligations?
Some of the Rights and Obligations of investors are :- Investors are mutual, beneficial and proportional owners of the scheme’s assets. The investments are held by the trust in fiduciary…
What are Open Ended and Close ended Funds?
Mutual Fund products and features – Equity Funds A variety of schemes are offered by mutual funds. It is critical for investors to know the features of these products, before…
What are Equity Funds?
Salient Features These are by far the most widely known category of funds though they account for broadly 40% of the industry’s assets, while the remaining 60% is contributed by…
Structure of Mutual Funds in India
Let us now try and understand the characteristics of mutual funds in India and the different types of mutual fund schemes available in the market. For anybody to become well…