Fund Basics

Custodian

Definition

What is Custodian?

A licensed institution that safeguards a fund's cash and securities separately from the manager's own assets.

Example in practice

When a fund buys government bonds, the custodian records and holds the assets for the benefit of the fund.

Keep learning

A pooled investment vehicle that combines money from many investors into one professionally managed portfolio.

A proportional ownership interest in a mutual fund.

The value of a fund's assets minus its liabilities, usually expressed in total and per unit.

A mutual fund that invests mainly in short-term, relatively liquid instruments such as treasury bills and deposits.

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