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2. Discuss the role and responsibilities of an Assets Management Company (AMC) appointed to manage the affairs of the mutual funds. Describe the working mechanism of an AMC and the functions performed byit |
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Answer» Hey guys Explanation:Asset management companies (AMCs) are FIRMS pooling investments from various individual and institutional investors. The company manages the investment by investing in capital assets such as stocks, real estate, BONDS, and so on. The asset management companies have professionals called fund managers who decide where the pooled money is invested. Fund managers IDENTIFY the investment options that are in line with the objectives of the investors.The fund manager first evaluates various metrics such as market and industry risks, before making a decision that is in line with the investment goals. For instance, a debt fund INVESTS mostly in bonds and government securities to keep the risks minimal. But an equity fund mainly focuses on equities (SHARES) of companies. The ultimate aim here is to make profitable investment decisions that will give investors maximum returns.Please mark my brianlist |
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