Money word, in plain English ← Back to all terms
Sponsor
The promoter who sets up a mutual fund, much like the promoter of a company.
Example. A bank acting as sponsor must show a five year track record before starting a fund.
The sponsor is the party that establishes a mutual fund. SEBI checks its track record, and it must contribute a set share of the AMC’s net worth. It starts the fund, then steps back.
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