Final answer:
The actual ownership of a mutual fund is with the shareholders, who buy shares in the fund and can earn dividends or profits from selling their shares. The management company oversees the fund's operations, with custodians, distributors, and a money manager aiding in various roles.
Step-by-step explanation:
The actual ownership of a mutual fund lies in the hands of the shareholders. A mutual fund is a type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities, which gives investors the chance to diversify their investments. Shareholders buy shares in the mutual fund and are therefore the owners of the fund. The shareholders earn dividends from the fund's investments and can profit from selling their shares.
However, the mutual fund is managed by a management company that makes all investment decisions. Other entities involved in the operation of a mutual fund include the custodians who safeguard the assets, the distributors who sell the fund's shares, and the money manager who is tasked with making investment choices to align with the fund's investment objectives.