AMC: A company that invests its clients' pooled fund into securities that match its declared financial objectives. These companies earn income by charging service fees to their clients.
Sponsor: The sponsor initiates the idea to set up a mutual fund. It could be a registered company, scheduled bank or financial institution. The sponsor appoints the trustees, AMC and custodian. Once the AMC is formed, the sponsor is just a stakeholder.
Trust/board of trustees: Trustees hold a fiduciary responsibility towards unit holders by protecting their interests. Sometimes, as with Canara Bank, the trustee and the sponsor are the same.
Very good details from the audit. Thanks my friend for these details. I also have been making use of personal financial planning online guides and eBooks in order to learn basics. Though I would be consulting an expert too when making investment decisions but I believe that a little basic knowledge won’t harm.
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