A mutual fund custodian is an institution that is responsible for safeguarding the assets of a mutual fund. The custodian is typically a large bank or trust company that has been approved by the fund's board of directors. The custodian's duties include maintaining records of the fund's holdings, collecting dividends and interest payments, and executing trades. The custodian also provides reports to the fund's shareholders and the Securities and Exchange Commission.
What is the difference between custodian and depository?
A custodian is a financial institution that holds customers' securities for safekeeping so as to minimize the risk of their theft or loss. A depository is a financial institution that provides safekeeping and custody services for securities and other valuables.
What are the 4 types of mutual funds?
There are four main types of mutual funds: equity funds, bond funds, balanced funds, and money market funds.
Equity funds invest in stocks, and can be further divided into subtypes such as large cap, small cap, and international. Bond funds invest in bonds, and can be further divided into subtypes such as government, corporate, and high yield. Balanced funds invest in both stocks and bonds, and money market funds invest in short-term debt instruments. What is the full form of NAV? The full form of NAV is "Net Asset Value." NAV is the value of a mutual fund's assets minus its liabilities, divided by the number of shares outstanding. The NAV is calculated at the end of each trading day, and is the price that investors pay to buy or sell shares of the fund.
Who appoints custodian in mutual fund?
The Securities and Exchange Commission (SEC) requires all mutual funds to have a custodian. The custodian is responsible for safeguarding the fund's assets and ensuring that all transactions are conducted in accordance with SEC regulations. The fund's board of directors is responsible for appointing the custodian.
How many types of MF are there?
There are four major types of mutual funds, which are distinguished by their investment objectives:
1. Equity funds: These funds invest in stocks and aim to provide capital appreciation.
2. Bond funds: These funds invest in bonds and aim to provide income and stability.
3. Balanced funds: These funds invest in both stocks and bonds and aim to provide both capital appreciation and income.
4. Money market funds: These funds invest in short-term debt instruments and aim to provide liquidity and stability.