Ch.3 · Sponsor, Trustee and AMC Roles · easy
What is the 'three-tier structure' of Indian mutual funds?
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EXPLANATION
India's mutual fund structure has three tiers: (1) Sponsor — sets up the fund, contributes to AMC capital, appoints trustees; (2) Trust/Trustees — hold assets in trust, oversee AMC, protect unit holders; (3) AMC — manages investments day-to-day. Each tier has distinct roles with built-in checks and balances to protect investor money.
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