As mentioned above, an investment fund is a set of assets without legal personality, which needs for its representation, management and administration of the services of two types of entities, which are:
- The management company of collective investment undertakings, who is the representative of the fund and who performs the management and administration work; and
- The custodian, which will be a duly authorized entity for the administration and safekeeping of securities, such as credit institutions or dealers.
Furthermore, a unitholder must bear in mind that investing in investment funds is not always cost-free. Such is the case of sales and redemption charges, which can sometimes be charged to the unitholders, not the fund, at the time of purchase or redemption of units.
On the other hand, as can be seen in the diagram, the investment fund has to pay for the services it receives from the management company and the custodian, through management and custodian fees, respectively.
