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Within the Fund Management team of an AMC, dealers are chiefly responsible for
A{'text': 'Signing off the Scheme Information Document each launch', 'label': 'A'}
B{'text': 'Approving new employee hires within the AMC', 'label': 'B'}
C{'text': 'Calculating the daily NAV for each active scheme', 'label': 'C'}
D{'text': 'Placing broker orders on fund manager instructions', 'label': 'D'}
Answer & Solution
Correct answer: D. {'text': 'Placing broker orders on fund manager instructions', 'label': 'D'}
1. Fund Management typically has three sub-teams: analysts, fund managers and dealers.
2. Analysts identify opportunities and evaluate securities and sectors.
3. Fund managers decide the portfolio and bear performance responsibility.
4. Dealers execute those decisions by placing orders with brokers.
_Source: NISM Series V-A: Mutual Fund Distributors Workbook (Dec 2019), Ch 3 "Legal Structure of Mutual Funds in India", §3.3.2_
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