Considering Investing in Mutual Funds and Banks
Posted on December 23, 2009 with Comments Off
Unlike the banking products that will record all public funds in financial accounting, investment funds in mutual funds are recorded separately from the accounting firm of investment managers and custodian banks. Why?
This happens because the mutual fund is a separate legal form, Establishments conducted by the investment managers and custodian banks based on legal entity deed and must have basic bookkeeping and tax number. In the event of bankruptcy, you will receive back the funds saved in the bank from the payment by the Deposit Insurance Institution up to a particular value or from the liquidation of assets.
While the mutual fund, if the investment manager or custodian banks declared bankrupt, mutual fund investors will receive back their investment funds in accordance with the net asset value / last unit. Alternatively, the management or administration of these funds transferred to the investment manager or other custodian bank based on the approval of the Capital Market Supervisory Agency and Financial Institution.
Tags: Investment, Money Management, Mutual Fund
Category: Banking