AMC
Market basicsAlso called: Fund house, Asset management company
Asset Management Company — the entity that runs a mutual fund’s schemes.
In plain terms
The fund house. It earns the expense ratio whether the fund beats anything or not.
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Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Custodian
Market basicsA separately registered entity that holds a mutual fund scheme’s securities, required to be independent of the sponsor in the manner the regulations prescribe.
In plain terms
This is where the money literally is. It is why an AMC in financial difficulty is a management problem rather than a custody problem.
Mutual fund trustee
Market basicsThe trust, and its trustees, that legally hold a scheme’s assets on behalf of the unitholders.
In plain terms
The assets belong to the trust for you, not to the AMC. A prescribed majority of trustees must be independent of the sponsor, which is the whole point of having them.
Re-KYC
Regulation & taxResubmitting or modifying an existing KYC record through an intermediary, to correct a deficiency or refresh the details held.
In plain terms
Done once with any one broker, AMC or registrar, and it propagates to the rest. The step most often left half finished is the mobile and email OTP, which is what the whole framework hangs on.