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Sponsor :
Sponsor is the promoter of the MF and appoints trustees, custodians and the AMC with prior approval of SEBI .

Trustee :
Trustee is responsible to the investors in the MF and appoint the AMC for managing the investment portfolio.

AMC :
The AMC describes Asset Management Company, it is the business face of the MF, as it manages all the affairs of the MF.

R & T Agents : the R&T
Agents are responsible for the investor servicing functions, as they maintain the records of investors in MF.

Custodians :
Custodians are responsible for the securities held in the mutual fund’s portfolio.

Scheme take over :
If an existing MF scheme is taken over by the another AMC, it is called as scheme take over.

Meaning of load:
Load is the factor that is applied to the NAV of a scheme to arrive at the price.

Market capitalization :
Market capitalization means number of shares issued multiplied with market price per share.

Price earning ratio :
The ratio between the share price and the post tax earnings of company is called as price earning ratio.

Dividend yield :
The dividend paid out by the company, is usually a percentage of the face value of a share.

Market risk :
It refers to the risk which the investor is exposed to as a result of adverse
movements in the interest rates. It also referred to as the interest rate risk.

Re-investment risk :
It the risk which an investor has to face as a result of a fall in the
interest rates at the time of reinvesting the interest income flows from the fixed income security.

Call risk :
Call risk is associated with bonds have an embedded call option in them. This option hives the issuer the right to call back the bonds prior to maturity.

Credit risk :
Credit risk refers to the probability that a borrower could default on a
commitment to repay debt or band loans

Inflation risk :
Inflation risk reflects the changes in the purchasing power of the cash flows
resulting from the fixed income security.

Liquid risk :
It is also called market risk, it refers to the ease with which bonds could be traded in the market.

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