1.2.1 Fund Set up Hierarchy

This topic provides information on Setting up fund hierarchy details.

The system provides the facility of maintaining and processing umbrella funds as well as non\u0002umbrella type of fund families. Therefore, a hierarchy of funds may be set up with fund rule profiles at each level except the lowest level.

Before you actually set up a fund in the system, you must first set up the kind of hierarchy that you require. You can do so by setting up the following:

• Fund Families:

  First, you set up the lowest levels in the fund hierarchy. The fund families created here may be designated either as umbrella funds or non-umbrella funds. For an umbrella fund, you must maintain at least three levels.

  Creation of the hierarchy for an umbrella fund is facilitated by this fund rule. Each umbrella fund has one sub-fund associated with it and each sub-fund has at least one share class associated with it. This makes up a complete hierarchy.

• Share Class Definition:

  First, you set up the lowest levels in the fund hierarchy. The fund families created here may be designated either as umbrella funds or non-umbrella funds. For an umbrella fund, you must maintain at least three levels.

  Creation of the hierarchy for an umbrella fund is facilitated by this fund rule. Each umbrella fund has one sub-fund associated with it and each sub-fund has at least one share class associated with it. This makes up a complete hierarchy.

• Setting up Sub-funds and Share Classes:

  Sub-funds and share classes may be setup, and the share classes may be mapped to the sub-funds. A rudimentary profile consisting of a system-generated Fund ID, Fund Name and Fund Short Name will be maintained for share class funds.