Sponsor
- Someone (individual or company) who has the interest to set up a mutual fund
- Sets up a trust and an Asset Management Company
Trust
- Money collected from the investors belong to a trust.
- Trustees who are the custodians of the investors’ money, are appointed by the Sponsor
Asset Management Companies
- Abbreviated as AMC
- A service provider to the trust that manages the money for a fee called AMC fee.
- All plans and schemes made by AMC are approved by the trustees before they come to the market.