Multiple choice

A sponsor of a mutual fund

  1. can act as the distributor of the mutual fund

  2. cannot act as the distributor of the mutual fund

  3. can act as the trustee of the mutual fund

  4. can act as the custodian of the mutual fund
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A mutual fund sponsor can perform multiple roles including distribution of the fund's schemes to investors. However, the sponsor cannot act as trustee or custodian, as these must be independent entities to ensure proper governance and investor protection.

Keep practicing — related questions