Question 8 of 10
Which of the following is the most important constituent of a mutual fund?
A
Shareholders
B
Debenture holders
C
Unit holders
D
Bond holders
Correct Option:
C
Explanation
Unit holders are the most important constituent of a mutual fund because they are the beneficial owners of the fund's assets and are entitled to its returns. The mutual fund is managed for their benefit by the Asset Management Company under the supervision of the trustees.
