Parties to mutual fund trust, Financial Management

Parties to Mutual Fund Trust

As is common to any trust covered under the Indian Trust Act, the parties involved in a mutual fund trust are the sponsor or settler, the trustees, the investor as beneficiary and the trust property. In a mutual fund trust, subscription made by the investor to the scheme, investments made by the mutual fund of the moneys received into capital market or money market instruments, the income received from such investments after incurring expenses incurred by the trust and any other assets bought by the mutual fund out of the investors money are trust property and the investors are entitled to all these properties as per the terms of the scheme and the provisions of the trust deed.

Till recently, in all the Mutual Funds including UTI, the sponsors, trustees, fund managers and custodians were the same persons with no difference of organization and management. But after the issue of certain guidelines by the Government of India on 14.2.1992, sponsors, trustees, custodians and fund managers are to be separate entities with independent legal standing. This has been done with a view to eliminate mismanagement of Mutual Funds.

Posted Date: 9/11/2012 1:17:16 AM | Location : United States







Related Discussions:- Parties to mutual fund trust, Assignment Help, Ask Question on Parties to mutual fund trust, Get Answer, Expert's Help, Parties to mutual fund trust Discussions

Write discussion on Parties to mutual fund trust
Your posts are moderated
Related Questions
SWBT Company must decide whether to repair a telephone company computer-based central office switch or purchase a new one. The existing switch originally cost $750,000 and is fully

Compare and contrast mutual and stockholder-owned savings and loan associations. A few savings and loan associations are owned by stockholders, just like commercial banks and ot

Define the basic motivations for a counterparty to enter into a currency swap.  Answer:  One major reason for a counterparty to enter into a currency swap is to exploit the comp

Discuss the applicability of an operating in vegetable growing business in Uganda.

Objectives of financial services authority FSMA provides four statutory objectives to FSA. They are: Market Confidence: Maintaining confidence in the financial system;

Revenue bonds are the securities issued for financing an entity for general      public-purpose. The securities issued for entity financing are backed up with the

Determine the Symptoms of overtrading Symptoms of overtrading are:- Fast sales growth Increasing trade payables Increasing trade receivables Fall in cash ba

1. Collect three years of recent, financial data (2007 - current), including the Balance Sheet, Income Statement, and Statement of Cash Flow. a. REQUIRED - paper copies o

COMPOUNDING TECHNIQUE is the method of calculating the future values of cash flows and involves calculating compound interest.  Under this process, interest is compounded when the

A bond is said to be currently callable if the issue is not protected against early call provision. But most new bond issues, even if currently callable, us