Service Duration 3 Days, Service Location Pan India Mutual Fund, Service Mode Offline

Mutual fund is a mechanism for pooling the resources by issuing units to the investors and investing funds in securities consistent with objectives as disclosed in offer document. Investments in securities are situated throughout a wide cross, Section of industries and sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in a similar manner direction in the same proportion in unison time. Mutual fund issues units to the investors in accordance with quantum of money invested by them. Investors of mutual funds are known as unit holders. The profits or losses are shared by the investors in proportion to their investments. The mutual funds normally come out with several schemes with different investment objectives which are launched spanning from instance to instance time. A mutual fund is necessary to be registered with securities and exchange board of india sebi which regulates securities markets before it can collect funds from the public. How is a mutual fund set up? a mutual fund is set up offered in the shape of a trust, Which has sponsor, Trustees, Asset management company amc and custodian. The trust is established by a sponsor or more than one sponsor who is like promoter of a company. The trustees of the mutual fund hold its property for the advantage of the unitholders. Asset management company amc approved by sebi manages the funds by making allocations across multiple types of who is, Securities. Custodian registered with sebi, Holds the securities of various schemes of the fund in its custody. The trustees are vested with the general power of superintendence and direction over amc. They monitor the efficiency and compliance of sebi regulations by the mutual fund. Sebi regulations require no fewer than two thirds of the directors of trustee company or board of trustees must be independent i. E. They must not be associated with the sponsors. Also, 50% of the directors of amc must be independent. All mutual funds are must be registered with sebi before they launch any scheme.