ECONOMICS (CBSE/UGC NET)

ECONOMICS

FINANCIAL MARKETS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Who undertakes the administration and investment activities of the fund (mutual fund)?
A
Sponsor
B
AMC-Asset Management Company
C
Trustee
D
Distributor
Explanation: 

Detailed explanation-1: -An AMC is a company that manages the funds of the investors. This involves the collection and allocation of the funds in a variety of assets and securities such as stocks, bonds, etc. The AMC appoints professionals to manage the funds and such professionals are called fund managers.

Detailed explanation-2: -The AMC full form in mutual fund is Asset Management Company. AMCs are formed as trust in India. AMCs are firms that pools money from various investors for investing in various securities. The AMC invests the money so collected in various securities like stocks, bonds, Government securities and commodities, etc.

Detailed explanation-3: -An asset management company (AMC) is a firm that invests pooled funds from clients, putting the capital to work through different investments including stocks, bonds, real estate, master limited partnerships, and more.

Detailed explanation-4: -Annual management charges (AMC) are generally applied as a percentage of the assets of the fund, for example 0.5% of fund assets per year. Charges could also include a fixed monetary portfolio management fee. Annual management charges are automatically taken from the assets of the pension fund on a regular basis.

Detailed explanation-5: -An asset management company (AMC) is a firm that invests a pooled fund of capital on behalf of its clients. The capital is used to fund different investments in various asset classes. Asset management companies are commonly referred to as money managers or money management firms as well.

There is 1 question to complete.