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17. What are the key functions of an AMC?
Ans; An AMC has to discharge mainly three functions . It has to
- Take investment decision and making investment of the Funds through market dealer/ broker in the secondary market securities or directly in the primary capital market or money market instruments;
- Realize Fund position taking into account all receivable and realization , moving corporate actions involving declaration of dividends , etc., to compensate investors for their investment in units ;and
- Maintain proper accounting for pricing the units and arriving at Net Asset Value (NAV), gather information about the listed schemes and the transaction of units in the secondary market. An AMC has to give feedback to the Trustee about its Fund Management operation and has to maintain a perfect information system.