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Daily Archives: March 2, 2024

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NFO in Mutual Funds and their importance

Mutual FundsBy Surendra NaikMarch 2, 2024

NFO is an acronym for New Fund Offer. An Asset Management Company (AMC) may launch a new Mutual Fund scheme offering subscriptions to the public. Such a new mutual fund offer is known as NFO. The AMC issues NFO shares to raise capital for purchasing securities. As per SEBI regulations, a new fund offering can…

Management structure and Functions of Mutual Funds

Wealth ManagementBy Surendra NaikMarch 2, 2024

Mutual funds are constituted as Trusts and are governed by the Indian Trusts Act, of 1882. The structure of mutual funds in India includes three tiers: sponsors, trustees, and asset management companies (AMCs). Sponsor: The sponsor acts as a promoter, who brings the initial capital for the mutual funds business akin to that of a…

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