Saturday, 23 August 2014

BASIC ACCOUNTING & FINANCE INTERVIEW SHORT QUESTIONS (181-190)



181. Liquid Funds : the debt funds invest only in instruments with maturities less than one year.

182. Gilt Funds : gilt funds invests only in securities that are issued by the GOVT. and therefore  does not carry any credit risk.

183.Balanced Funds :funds that invest both in debt and equity markets are called balanced funds.

184. Sponsor : sponsor is the promoter of the MF and appoints trustees, custodians and the AMC with prior approval  of SEBI .

185. Trustee : trustee is responsible to the investors in the MF and appoint the  AMC  for managing the investment portfolio.

186. AMC : the AMC describes Asset Management Company, it is the business face of the MF, as  it manages all the affairs of the MF.

187. R & T Agents : the R&T agents are responsible for the investor servicing functions, as they maintain the records of investors in MF.

188. Custodians : custodians are responsible for the securities held in the mutual fund’s portfolio.

189. Scheme take over : if an existing MF scheme is taken over by the another AMC, it is called as scheme take over.

190.Meaning of Load: load is the factor that is applied to the NAV of a scheme to arrive at the price.


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