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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, who holds the assets of the mutual fund scheme for the benefit of unit holders?

The trustees hold the fund's property for the benefit of unit holders, with the securities kept in safe custody by a custodian. The AMC only manages investments, the sponsor sets up the fund, and the RTA maintains investor records.

  1. AThe Asset Management Company
  2. BThe Trustees, with the custody of securities held by a custodianCorrect
  3. CThe Sponsor
  4. DThe Registrar and Transfer Agent

Explanation

The mutual fund is set up as a trust. Trustees hold the property of the fund for the benefit of unit holders, and securities are kept in the safekeeping of a custodian. The AMC manages investments, the sponsor establishes the fund, and the RTA handles unit records and transactions.

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