Multiple choice

Issuing and redeeming units of a mutual fund is the role

  1. the custodian

  2. the registrar and transfer agent

  3. the trustees

  4. the bankers
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Registrar and Transfer Agent (RTA) is responsible for all administrative functions related to unit issuance, redemption, and record-keeping for mutual funds. RTAs maintain investor records, process transactions, and handle KYC compliance. Custodians safekeep securities, trustees oversee fund operations, and bankers handle banking transactions - none of these handle unit issuance/redemption.

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