The mutual fund enters into a contract with a distributor or broker-dealer to manage the fund's portfolios. The distributor can be an affiliate of a brokerage firm, an insurance company, a bank, an investment management firm, or an unrelated company.

Question

Quizplus · Accepted Answer

A mutual fund's investment portfolios are managed by the fund's investment adviser or management company, not by a distributor or broker-dealer. The distributor or broker-dealer is responsible for marketing and selling the fund's shares to investors.

The Mutual Fund Enters into a Contract with a Distributor