Ch.3 · Custodian and RTA Functions · medium
What is the legal status of mutual fund unit holders?
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EXPLANATION
Unit holders are the beneficiaries of the mutual fund trust. They are not shareholders of the AMC (which is a separate company) nor creditors. As trust beneficiaries, they are entitled to a proportional share of the scheme's net assets, income distributions, and redemption proceeds based on the number of units held.
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