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
Q. What is Estate Tax? Estate Tax - Tax on the value of a DECENDENT'S taxable estate, usually defined as the decedent's ASSETS less LIABILITIES and certain expenses that may in

A. Initial evaluation Comment on the structure of the attached portfolio, and on the financial risks facing Copper Based plc (CB), making use of what you know about how a port

Does is make any sense to calculate betas against local indexes when a company has a great part of its operations outside this local market? Both the betas calculated against l

How competitive is the market for banking services? A: With above 7,000 banks and thrifts in the U.S., banking is one of the so many competitive industries in the world. Refer

Q. Explain about Book Value Weights? Book Value Weights: - Book value weights are calculating form the values taken from the balance sheet. The weight to be assigned to every s

Securitization refers to conversion of illiquid assets to liquid assets by converting longer duration cash flows into shorter duration ones. Securitization denote

Credit analysis Assessment of creditworthiness depends on the examination of information relating to the new customer. This information is frequently generated by a third party

What is the Benefits of divestment ¸ Releases cash tied up to finance more promising opportunities. ¸ Reduces diversification and complexity of a group in case of a demerger

What are the primary variables being balanced in the EOQ (Economic Order Quantity) inventory model?  Explain The primary variables being balanced in the EOQ (Economic Order Quant

Advantages to the Investors: The warrant acts as a sweetener and ensures a better subscription to the NCDs, especially for companies with good track record. NCDs with warran