Which company usually fills the role of the custodian for a mutual fund?
A.
A trust company
B.
A management company
C.
An insurance company
D.
A subsidiary company
The Answer Is:
A
This question includes an explanation.
Explanation:
Comprehensive Detailed Explanation with Investment Funds in Canada Course References:
The custodian of a mutual fund is responsible for safekeeping assets and handling cash inflows and outflows.
According to CSC, an independent financial organization, usually a trust company, serves as custodian. The custodian collects funds from investors, receives portfolio income, and arranges for distributions and redemptions.
Thus, the correct answer is A. A trust company.
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