Ch.3 · Custodian and RTA Functions · easy
What is the 'three-tier structure' of Indian mutual funds?
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EXPLANATION
The three-tier structure of Indian mutual funds consists of: (1) Sponsor — sets up the fund and contributes to AMC net worth; (2) Trust/Trustees — legally hold assets in trust, oversee AMC, protect unit holders; (3) AMC — manages investments and operations. This structure creates checks and balances ensuring no single entity controls all aspects of the fund.
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