Investment Accounts are maintained by the custodian bank, to settle securities transactions.
Redemption Accounts are specifically funded to payout investors.
Expense Accounts are used to meet regular fund running expenses.
A mutual fund scheme may appoint one or more collecting bankers. The names of such banks and their branches are listed in the new fund offer (NFO) application form.
Since the NFO price applies uniformly to all purchases during the NFO period, there is no time stamping requirement. Therefore the branches of the collecting bank are also available for collecting NFO applications and payment instruments.
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