Multiple choice

Each unit holder of a mutual fund is

  1. a creditor to that mutual fund

  2. a debtor to that mutual fund

  3. a trustee of that mutual fund

  4. part owner of the assets of that mutual fund
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Mutual fund unit holders are part owners of the fund's underlying assets - this is the fundamental legal structure of mutual funds. They are neither creditors nor debtors (that would be bondholders), and they are not trustees (that role belongs to the trustee company appointed to oversee the fund).

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