How A Mutual Fund Is Created
Mutual funds are created by investments companies, brokerage houses, banks and other financial institutions. Here in the Philippines, banks called it UITF or unit-investment trust fund or formerly known as common trust fund. A company frequently offers a range of funds. In some cases, companies offer funds in more than one market or establish legal bases in more than one country to increase their market share. Many U.S banks, for example, sell funds in Asia in addition to those they sell in the U.S. Because certain countries have more liberal tax policies than others, investment companies often prefer to use them as a legal base. Funds based in tax havens are often called offshore funds.
