Business And Financial

Regulations governing how mutual funds work very different from the banks, this is intended to provide protection to investors. In mutual funds, there are several parties concerned, Investment manager with the custodian bank issuing mutual fund products. Custodian banks charge to store and do all kinds of administrative activity in the management of mutual funds.

Meanwhile, the investment manager in charge of managing mutual fund investments in accordance with existing regulations and investment policies in order to obtain maximum results. Both have an unaffiliated party. This is intended so they can watch each other. If one party in breach, the other party shall report the matter to the Capital Market Supervisory Agency and Financial Institution as the capital market authority.

Separately, investment managers and custodian banks provide separate reports for the managed investment funds to the Capital Market Supervisory Agency and the financial institutions on a regular basis. If the consideration of the Capital Market Supervisory Agency and Financial Institution, one of the parties are considered incapable of doing his duty, capital market authority has the right to order that mutual funds are transferred to another party to protect you. In addition, there are other parties that a mutual fund dealer. Usually, banks charge to assist the investment manager to market the mutual fund units to investors.