Money word, in plain English ← Back to all terms
Trustee
The guardian who holds a fund's assets in trust for investors and watches over the AMC.
Example. The trustees must approve big changes to a scheme to protect investors.
Trustees hold a mutual fund’s property in trust for the unit holders. They do not manage the money, they oversee the AMC and make sure it follows the rules. A fund needs at least four trustees, most of them independent.
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