A mutual fund is a trust that includes a sponsor, trustees, and an asset management firm (AMC).
A sponsor is a person who promotes a company and establishes the trust. The mutual fund is managed by the AMC (an asset management company approved by SEBI), while its property is held by the trustees.
The AMC can be supervised and directed by Trustees. They oversee the compliance with SEBI Regulations and the performance of mutual funds.
As an investment manager for the trust, the AMC initiates various Mutual Fund Schemes and launches them once trustees approve. The AMC is responsible for all aspects of fund operations, including customer service, accounting, and marketing functions.