Important Points for IC 89 - Management Accounting Exam
Page 26 Of 54
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An arms length relationship is required between the fund sponsor, trustees, custodian and Asset management company.
Mutual funds offer certain unique facilities of simplicity, affordability, risk diversification capacity with professional fund management benefit.
Classification of mutual funds based on Investment strategies: Equity funds, Balanced funds, Sector funds, Large-cap funds, Mid/small cap funds, Equity linked savings scheme, Index funds.
Advantages of mutual funds include: Professional management, Diversification, Convenient Administration, Low costs, Liquidity, Transparency and Good return.
All Mutual Funds and securities investments are subject to market risks and there can be no assurance that the schemes objective will be achieved and the NAV of the scheme may go up or down depending upon the factors and forces affecting securities markets.
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