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NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Concept and Role of a Mutual Fund

In the Indian mutual fund structure, which entity holds the assets of a mutual fund scheme on behalf of the unit holders?

The trustees hold the scheme's assets for the benefit of unit holders, with securities kept in custody by a SEBI-registered custodian. The AMC manages investments but does not own the assets, and the RTA only processes transactions and maintains investor records.

  1. AThe Asset Management Company
  2. BThe Trustee, with the securities held in custody by a SEBI-registered custodianCorrect
  3. CThe Registrar and Transfer Agent
  4. DThe mutual fund distributor

Explanation

A mutual fund is set up as a trust. The trustees hold the property of the scheme for the benefit of unit holders, and the securities are kept with a custodian. The AMC only manages the money, and the RTA only handles unit records and transactions.

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