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
Issuance Calendar Issuance calendar gives clear and timely information about the borrowing program of the government. It clearly conveys the maturity profile of outstanding sto

Types of financial incentive schemes Performance associated pay (PRP) systems e.g. piecework or sales commission Bonuses e.g. supplementary payments for targets or ai

Interlinkage in the Financial Markets - Common Features The interlinkage present in the financial markets is essentially due to the fact that all these markets are in the proce

As the number of companies borrowing directly from the capital market increases, and as the industrial environment becomes more and more competitive and demanding,

State the term- Financing Decision The second financial decision is financing decision,which essentially addresses two questions: a. How much capital must be raised to fu

Rationale for corporate governance The organization of the world economy (particularly in present years) has seen corporate governance gain prominence mostly since: Insti

Explain how Eurocurrency is created. Answer: The center of the international money market is the Eurocurrency market. A Eurocurrency is a time deposit of money in an internationa

All the bonds are not making periodic coupon payments. Zero-coupon bonds are those bonds where the bondholder realizes interest by buying it at a deep discount to its face

Due to the complexity of the tasks involved in many projects, communication of responsibility for those tasks is often helped by means of graphical planning techniques.

Performance of Mutual Funds The performance of Mutual Funds can be evaluated by calculating the rate of return earned during the relevant comparison period. The return will inc