The sponsor with sebi approval appoints trustee. Trustee is the one who sees that funds are managed according to investor mandate. Trustees have a fiduciary responsibility. Trustees are the one who approve the mutual fund schemes floated by the AMC .They receive fee for their services. They are also responsible to furnish report to SEBI on AMC and regarding the functioning of the fund. At least two thirds of the trustees should be independent. Trustees are required to meet four times a year to look after the working of the AMC.
AMC:
Acts as investment manager of the trust under the board supervision and direction of the trustee. AMC is the fund managerAMC floats the different MF schemes. AMC is responsible to the trustees. AMC should be registered with SEBI.It should have a net worth of ten crore at all the times. An AMC of one fund cannot be the trustee of another fund. An AMC cannot engage except in portfolio advisory and management.
AMC:
Acts as investment manager of the trust under the board supervision and direction of the trustee. AMC is the fund managerAMC floats the different MF schemes. AMC is responsible to the trustees. AMC should be registered with SEBI.It should have a net worth of ten crore at all the times. An AMC of one fund cannot be the trustee of another fund. An AMC cannot engage except in portfolio advisory and management.
ReplyDeleteNice Article. Thank you for sharing the informative article with us.
This post is helpful to many people. stockinvestor.in is a stock related website which provides all stocks related information like new stocks and shares available in the stock market.
Bombay stock exchange
nifty50