What is a fund structure?
What is a fund structure?
Structured funds are a type of fund that combines both equity and fixed-income products to provide investors with a degree of both capital protection and capital appreciation. Structured funds also use options, futures, and other derivatives, often linked to market indexes, to provide exposure to capital appreciation.
What are the constituents of mutual fund?
The different constituents of Mutual funds in India are as follows:
- Fund Sponsor: ADVERTISEMENTS:
- Mutual Fund: ADVERTISEMENTS:
- Trustees: The MF or trust can either be managed by the Board of Trustees, which is a body of individuals, or by a Trust Company, which is a corporate body.
- Asset Management Company:
What is the three tier structure of mutual funds?
There are three distinct entities involved in the process – the sponsor (who creates a Mutual Fund), trustees and the asset management company (which oversees the fund management).
What do you mean by fund of funds?
A fund of funds (FOF) is a pooled fund that invests in other funds. FOFs usually invests in other hedge funds or mutual funds. The fund of funds (FOF) strategy aims to achieve broad diversification and minimal risk. Funds of funds tend to have higher expense ratios than regular mutual funds.
What is the structure of an investment fund?
A stand-alone fund structure comprises three entities: 1) the fund (the entity holding the securities through which the investors participate), 2) the general partner of the fund (the company responsible for the day-to-day operations of the fund) and 3) the investment manager of the fund (the company responsible for …
Which of the following include the primary structure of the mutual funds?
Notes: Primary structures of mutual funds include open-end funds, unit investment trusts, and closed-end funds.
What is fund sponsor?
Fund Sponsor means an insurance, variable annuity or investment company that provides Funding Vehicles available to Participants under this Plan.
How are mutual fund constituted and managed in India?
In India mutual funds are organized in trust form. The instrument of trust has to be in the form of a deed, duly registered under the provisions of the Indian Registration Act, 1908 executed by the sponsor in favour of the trustees named in such an instrument.
What is fund of funds in India?
A ‘Fund Of Funds’ (FOF) is an investment strategy of holding a portfolio of other investment funds rather than investing directly in stocks, bonds or other securities. An FOF Scheme of a primarily invests in the units of another Mutual Fund scheme.
What are hedged funds?
Hedge funds are financial partnerships that use pooled funds and employ different strategies to earn active returns for their investors. These funds may be managed aggressively or make use of derivatives and leverage to generate higher returns. They are generally only accessible to accredited investors.
What is the definition of a structured fund?
Structured Funds Defined. Reviewed by James Chen. Updated Jan 10, 2018. Structured funds are a type of fund that combines both equity and fixed-income products to provide investors with a degree of both capital protection and capital appreciation.
Which is a constituent of a mutual fund in India?
The structure is defined by Sebi (Mutual Fund) Regulations, 1996. The key constituents of Indian mutual funds are: Sponsor: The sponsor is akin to a promoter of a company as he gets the mutual fund registered with Sebi.
How are mutual funds formed as a trust?
Mutual funds are constituted as Trusts. The mutual fund trust is created by one or more Sponsors, who are the main persons behind the mutual fund operation. Every trust has beneficiaries.
What are the components of a mutual fund?
Other Components in the Structure of Mutual Funds. 1 Custodian. A custodian is one such entity that is responsible for the safekeeping of the securities of the Mutual Fund. Registered under SEBI, they 2 Registrar and Transfer Agents (RTAS) 3 Auditor. 4 Brokers.
