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 a doctor licensed to practise only in one special hospital. In GIFT IFSC, the firm that manages funds must hold an IFSCA registration as a Fund Management Entity. Its schemes then sit under that registration, a bit like departments inside the hospital.

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.