NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Legal Structure of Mutual Funds in India
Which of the following functions is performed by the asset management company of a mutual fund in India?
The asset management company manages the mutual fund's schemes, making investment decisions, and launches schemes with the approval of the trustees. It acts as the investment manager of the trust and works under the supervision of the trustees and SEBI.
- AAppointing the sponsor of the fund
- BManaging the schemes' investments and launching schemes with trustee approvalCorrect
- CRegistering the mutual fund with SEBI on behalf of unit holders
- DAuditing the trustees' accounts
Explanation
The AMC is appointed by the sponsor or trustees and approved by SEBI. It manages the schemes' portfolios and launches schemes after trustee approval. It does not appoint the sponsor or audit the trustees.
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