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Ch.4 · AMFI Code of Conduct · medium

Which of the following statements about the Trust Deed of a mutual fund is correct?

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EXPLANATION

The Trust Deed is executed between the sponsor and the trustees (Board of Trustees or Trustee Company). It defines the terms under which the mutual fund is established and the obligations of the trustees.

A.It is executed between the AMC and SEBI

B.It is executed between the sponsor and the trustees [✓ Correct]

C.It is executed between the trustees and the AMC

D.It is executed between the sponsor and the AMC

EXPLANATION

The Trust Deed is executed between the sponsor and the trustees (Board of Trustees or Trustee Company). It defines the terms under which the mutual fund is established and the obligations of the trustees.

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