Key constituents of Mutual fund

Key constituents of Mutual fund

In this article, we are going to discuss on key constituents of our mutual fund. Let us begin.

1: Trustee.

The first one is trustee. The main role of a trustee is to ensure that the interests of the unitholders is protected while making sure that the mutual fund companies comply with all the regulations of the regulatory body  can be safely here. When, say, unit holders, unit holders means the people who have invested in the mutual funds.

Key constituents of Mutual fund
Key constituents of Mutual fund

 2: Sponsors.

Sponsors as policy regulations. A foreign sponsor is any person or any entity that can set up a mutual fund to earn money by fund management, so which means if HDFC Mutual Fund is there, so they do have a sponsor, some sponsors who set up the HDFC Mutual Fund. They’re also known as the promoter of the mutual fund. So they are the ones who bring in the capitals initially.

Key constituents of Mutual fund
Key constituents of Mutual fund

3: Custodian.

Next is custodian, custodian has the custody of the assets of the mutual fund, the custodian ensures that all these securities that are purchased by the fund managers are indeed held in the scheme. So we all know that the fund managers, they decide in which equity bond, where to invest the money, in which company they want to invest your capital. So custodian is the one who is keeping those records.

what are mutual funds investments.
what are mutual funds investments.

4:Registrars and transfer agents (RTA)

 the registrars and transfer agents. They maintain the records of the investors. Few activities that they perform include processing  and redemption in the scheme of the information of the investor. At times what happens is our addresses change, her name might change or anything might be entered incorrectly in the information with the AMC. So who is responsible to update those informations ? . It’s the RTA. 

Key constituents of Mutual fund
Good to know facts about Mutual Fund industry Key constituents of Mutual fund

5: Auditors.

Next hour, auditors, so you all might have heard about them auditors. It’s a very common word that we see. Yes. So auditors are also a part of mutual funds as well. They are responsible for the audit of the account. Accounts of the mutual fund schemes are maintained independent of the accounts of the AMC.

6: Fund accountants.

They perform the role of calculating the NAV stand for net asset value that is net asset value by collecting information from various sources. You can say that they do accounting of the mutual fund schemes. So every invest money, the what is the money? What is the inflow outflow? All that record keeping accounting at the AMC  part is done by the the.

7: Distributors.

the distributors. They play a very pivotal role in the mutual fund industry since they sell the mutual fund schemes to the investors. They are the ones who bring new investors for the AMC. So they play as a link between investor and the AMC. So while we discuss this, it was important to know what as the different parties that are involved in a mutual fund so that we can have a clearer picture before investing in the mutual fund schemes.

Please also check our other article.

Thank you.

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