Skin-in-the-game rules for mutual funds

Tue, 19 May 2026 00:00:00 +0000

SEBI’s skin-in-the-game framework requires designated AMC employees, particularly fund managers and senior management, to invest a portion of their compensation in the mutual fund schemes they manage. The framework was introduced to align AMC employee incentives with investor outcomes, ensuring that the people making investment decisions have personal financial exposure to the schemes’ performance.

For Indian retail investors, skin-in-the-game rules provide an indirect signal of AMC alignment with investor interests. Schemes whose managers have substantial personal investment are likely to be managed with the same risk-management mindset as the manager’s own money.

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Skin-in-the-game rules for mutual funds