1. Every MF House has a 3-tier structure, viz. Sponsor (Promoter), Trustee (Board) and AMC (Asset Management Company), and is regulated by Sebi's guidelines.
2. AMC is governed as per Companies Act,1956, and has an organization structure comprising of a CEO, CIO, CMO, COO, Compliance Officer, etc., besides appointing a Custodian Depository, Registrar / Transfer Agent, and an external financial Auditor.
3. Fund managers for various schemes work under the CIO, make decisions based on inputs from an independent advisory team, and execute them through a dealing room, after discussing the strategy with CIO, who has the final say on asset allocation.
4. CIO, while leaving selection of individual instruments to fund managers, ensures that their investment decisions are compliant with AMC's policies and rules, which involves a tighter rein on costs, performance-based pay and a system of multiple checks and balances through hands-on online real time automation system.
5. Compliance Officer and Audit teams also have access to all executive decisions and transactions, with complete independence to scrutinize them and report directly to the CEO.
6. Trustees keep a keen watch on AMC, custodian, registrar, etc., while Sebi also has strict reporting norms with very high disclosure levels.
7. While elaborate systems and controls take care of money management in a prudent manner, we should ensure that our investments continue to remain relevant to our goals and risk appetite, through regular monitoring and reviewing.
8. For this, standardized fund house documents and online portfolio trackers are very handy.
2. AMC is governed as per Companies Act,1956, and has an organization structure comprising of a CEO, CIO, CMO, COO, Compliance Officer, etc., besides appointing a Custodian Depository, Registrar / Transfer Agent, and an external financial Auditor.
3. Fund managers for various schemes work under the CIO, make decisions based on inputs from an independent advisory team, and execute them through a dealing room, after discussing the strategy with CIO, who has the final say on asset allocation.
4. CIO, while leaving selection of individual instruments to fund managers, ensures that their investment decisions are compliant with AMC's policies and rules, which involves a tighter rein on costs, performance-based pay and a system of multiple checks and balances through hands-on online real time automation system.
5. Compliance Officer and Audit teams also have access to all executive decisions and transactions, with complete independence to scrutinize them and report directly to the CEO.
6. Trustees keep a keen watch on AMC, custodian, registrar, etc., while Sebi also has strict reporting norms with very high disclosure levels.
7. While elaborate systems and controls take care of money management in a prudent manner, we should ensure that our investments continue to remain relevant to our goals and risk appetite, through regular monitoring and reviewing.
8. For this, standardized fund house documents and online portfolio trackers are very handy.