Multiple choice

In a mutual fund investors' subscriptions"8.re accounted for as

  1. Liabilities

  2. Deposits

  3. Unit capital

  4. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

When investors subscribe (buy units), their money becomes part of the fund's unit capital - the total capital raised through unit issuance. It's not a liability (not owed back) or a deposit (investors own units, not a debt claim). Unit capital represents the equity portion of the mutual fund.

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