Mutual fund is a combined investment funds transferred to trust management company. Mutual fund itself is not a legal entity, it is so-called “property complex”, and indeed, is investment portfolio.
Investing money in mutual funds, investor actually enters into a contract with the management company and trust management becomes the owner of investment shares. Management Company extradites shares, making this trust management of mutual funds.
The assets transferred into mutual funds by shareholders, remains the property of shareholders and management company is implementing trust management of mutual funds, making transactions with that property.
The Management Company is entitled to transfer their rights and responsibilities for managing mutual funds to another management company.
