New Delhi, Sept. 12 -- For mutual fund investors, an asset management company (AMC) shutting down can raise concerns about the safety and accessibility of their investments. Since the AMC manages the schemes, its insolvency, exit or inability to continue operations may leave investors unsure about what happens to their units. However, an AMC's closure does not mean investors lose ownership of the underlying assets.

That is because the AMC and the mutual fund scheme are legally and structurally separate. Mutual funds are set up as trusts, with the scheme's assets held for the benefit of unit holders, while the AMC's role is to manage those investments. The securities are also held separately through a SEBI-registered custodian and do not ...