Are you interested in learning about the working of mutual fund schemes? Has the system of mutual fund always intrigued your thoughts? Here’s a list of parties you need to know about before you start investing!
Parties involved in mutual fund investing:
- Asset Management Company
An Asset Management Company is an NBFC that has delegated the authority and responsibility of managing and monitoring mutual fund schemes.
- Participants
Participants are the ones investing in a mutual fund i.e. the investors who are interested in mutual fund investing.
- Trustee
A trustee in the case of Mutual funds is a holding service that has administrative power for managing the money, property or assets used in mutual funds. The trustee can be an individual person, member of the board of directors, a company, or a bank appointed with the approval of the SECP.
- Custodian
A custodian generally is a supervisor, mainly responsible for monitoring the operations of the mutual fund and actions of the fund manager and other parties related to the mutual fund.
- Registrar
A registrar of a mutual fund may be an individual or a firm/company. The AMC may itself act as a registrar, or appoint the registrar to perform functions like maintaining the register of unitholders, dealing with the unitholders, issuing statements to unitholders,
etc.