Fund managers or the asset management company, Financial Management

Fund Managers or the Asset Management Company (amc)

The role of fund managers is highly significant in the mutual fund operations. So far, this role is being played by the Mutual Funds through the subsidiary company of the sponsoring bank or inside the banks through department or division. Under the Guidelines, fund managers will have to be a separate company specialized and skilled in the investment activities.

AMC has to discharge mainly three functions as given below:

Taking investment decisions and making investments of the funds through market dealer/brokers in the secondary market securities or directly in the primary capital market or money market instruments;

Realize fund position by taking account of all receivables and realizations, moving corporate actions involving declaration of dividends, etc. to compensate investors for their investments in units; and

Maintaining proper accounting and information for pricing the units and arriving at Net Assets Value (NAV), the information about the listed schemes and the transactions of units in the secondary market. AMC has to give feedback to the trustees about its fund management operations and maintain a perfect information system.

 

Posted Date: 9/11/2012 1:18:48 AM | Location : United States







Related Discussions:- Fund managers or the asset management company, Assignment Help, Ask Question on Fund managers or the asset management company, Get Answer, Expert's Help, Fund managers or the asset management company Discussions

Write discussion on Fund managers or the asset management company
Your posts are moderated
Related Questions
Q. Example On modigliani and miller approach? The subsequent is the data regarding two companies X and Y belonging to the same risk class: Company X

How do mergers affect small businesses? A: As per to a recent study by Federal Reserve and Wharton Financial Institutions Center economists, not a big deal. Their analysis reve

Discounted Cash Flow A technique used to present a forecasted stream of future cash flows in conditions of its present value, or its value in today's dollars. Discounted cash

What is Net Present Value? Describe please.


APPLICABILITY OF OPERATING CYCLE

Q. Major proportion of the maximum financing requirement? Whether the credit terms themselves is able to be changed may depend upon the credit terms of competitors when set alo

Suppose the supply curve for a good is totally inelastic.  If the government imposed a price ceiling below the market-clearing level, would a deadweight loss result?  Explain.

Coefficient of Determination As before, Where, We can show that TSS = RSS + ESS We can also show that F = is an F distr

Working capital cycle (operating/trading/cash cycle) It is the time between paying for goods supplied and final receipt of cash from their sale. It is desirable to keep cycle a