Custodian
An entity safeguarding financial assets on behalf of clients.
Detailed Description
Custodian
What is the primary function of a custodian in investment management?
The primary function of a custodian is to hold and safeguard a client's financial assets, ensuring their safekeeping and facilitating various transactions.
What types of clients do institutional custodians serve?
Institutional custodians serve large entities such as pension funds, mutual funds, and insurance companies.
How do custodians enhance investor security?
Custodians enhance investor security by providing a layer of protection against risks, ensuring proper handling of assets, and implementing security measures.
What factors should investors consider when choosing a custodian?
Investors should consider the custodian's reputation, range of services, technological capabilities, fee structure, and regulatory compliance.
How do custodial fees impact investment returns?
Custodial fees can vary widely and may impact overall investment returns, making it essential for investors to understand the fee structure.