Multiple choice

Transfer agents of a mutual fund are not responsible for

  1. issuing and redeeming units of the mutual fund

  2. updating investor records

  3. preparing transfer documents

  4. investing the funds in securities markets

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

Transfer agents handle administrative tasks like issuing/redeeming units (A), updating records (B), and preparing transfer documents (C). They do NOT invest funds in securities - that's the AMC's job.