Which of the following Statements about the Asset

Solution

Asset management companies (AMCs) are firms pooling funds from various individual and institutional investors and investing in various securities. The company invests the funds in capital assets such as stocks, real estate, bonds, and so on. The asset management companies have professionals called fund managers who manage the investment and the research team selects the right securities. An AMC works under the supervision of the board of trustees. But, they are answerable to India’s capital market regulator, the Securities and Exchange Board of India (SEBI). The Association of Mutual Funds in India (AMFI) is another statutory body that addresses investors’ grievances and looks after their interests. Every mutual fund house must comply with the set of risk management guidelines by SEBI and AMFI.