Multiple choice

The Board of Trustees of a mutual fund

  1. acts as a protector of investor's interests

  2. directly manages the portfolio of securities

  3. does not have the right to dismiss the AMC

  4. cannot supervise and direct the working of the AMC

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Board of Trustees acts as a protector of investor interests by supervising the AMC. They can dismiss the AMC and supervise its working, but they do NOT directly manage portfolios - that's the AMC's job.