n NISM Certifications
V-A NISM Series V-A
Medium

From the below mentioned entities associated with a mutual fund, who has to mandatorily contribute to the corpus of the mutual fund?

Practice question from NISM Series V A - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The Trustees

  2. B

    The Custodians

  3. C

    The Asset Management Company

  4. The Sponsors

    Correct answer

Why this is the answer

The Sponsor is responsible for the creation of the mutual fund trust and contributes at least 40% of the AMC’s net worth. The sponsor plays a key role in setting up the mutual fund and bringing in capital to initiate the business.

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