What is a Mutual Fund Underwriter ?

A Underwriter is also known as an investment banker or distributor. He or she is a Middleman between an issuing corporation and the public. The underwriter usually forms an underwriting group, called a syndicate, to limit risk and commitment of capital. He or she may also contract with selling groups to help distribute the issue for a percentage. In the distribution of mutual funds, the underwriter is known as a sponsor or distributor, or even wholesaler. Investment bankers also offer other services, such as counsel and advice on the raising and investment of capital.