Multiple choice

Which of the following is true?

  1. A fund sponsor can contribute to the initial corpus of the trust

  2. A fund sponsor can contribute to the capital of the AMC

  3. A fund sponsor can invest in his own fund's schemes

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A fund sponsor has multiple roles and investment capacities: contributing to the trust's initial corpus, investing in the AMC's capital, and investing in schemes of their own fund. This demonstrates the sponsor's multifaceted involvement in the mutual fund structure.

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