People and entities

2 · Think of it like thisThink of a bus. The investor is the passenger who pays the fare and trusts the driver to reach the destination. The investor does not drive or choose the route; they decide whether to get on, and they share in where the bus ends up.

2 · Think of it like thisThink of a person who starts a school. They set it up, put in the first money and hire the principal to run it day to day. The sponsor plays that role for a fund: it sets the fund up and usually invests some of its own money in it.

2 · Think of it like thisThink of the captain of a cricket team. The owners pick the team and pay for it, but the captain makes the calls on the field. The fund manager is the person or firm making the investment calls: what to buy, when to sell and how much to hold.

2 · Think of it like thisThink of the company behind a mutual fund brand you see in newspaper ads. That company, the AMC, runs all the mutual fund schemes under the brand. It does the same job as a fund manager, but for mutual funds.

2 · Think of it like thisThink of a guardian holding money for a child. The guardian does not spend it on themselves; their job is to make sure it is used only as promised. A trustee does that for a fund: it watches over the fund for the investors and checks that the manager follows the rules.

2 · Think of it like thisThink of a bank locker. You keep your jewellery there so it is safe and recorded, even if you hand the key to someone else to use. A custodian is the fund's locker: it holds the shares, bonds and other securities, and keeps a record of every movement.

2 · Think of it like thisThink of the accounts department of a business, but run by an outside firm. It keeps the books, works out each investor's share and value, and prepares statements. The fund administrator does that for a fund.

2 · Think of it like thisThink of an examiner marking an answer sheet that someone else wrote. The auditor does not prepare the fund's accounts; it checks them and gives an independent opinion on whether they are true and fair.

2 · Think of it like thisThink of a shop that gets a loan or a new partner's money. The shop is on the receiving end. An investee company is the business the fund puts money into, by buying its shares or lending to it.

2 · Think of it like thisThink of a sleeping partner in a family business. They put in money and share in profits, but leave daily decisions to the managing partner. A limited partner (LP) invests in a fund in the same way, and their risk is limited to what they put in.

2 · Think of it like thisThink of the managing partner of a firm who runs the show and takes the key calls. In a fund set up as a partnership, the general partner (GP) runs the fund, and the limited partners (LPs) invest in it.

2 · Think of it like thisLike a personal driver for your own car: the car stays yours, the driver takes it where it needs to go.

2 · Think of it like thisLike the head chef: others help, but one person answers for every dish that leaves the kitchen.