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.

PPFAS Sponsor Commitment and Skin in the Game

Sat, 16 May 2026 00:00:00 +0000

The sponsor commitment of Parag Parikh Financial Advisory Services Limited (PPFAS Ltd) to PPFAS Mutual Fund , together with the personal capital invested by members of the Parikh family and the senior fund-management team in the schemes they manage, is a structural attribute that PPFAS publicly emphasises as a differentiator from larger Indian asset managers. The combined doctrine, often referred to in fund-house literature and in the Annual Unitholders’ Meet discourse as “skin in the game”, encompasses three distinct layers: the regulatory minimum sponsor contribution prescribed under the SEBI (Mutual Funds) Regulations, 1996 , the additional voluntary investment by the sponsor entity in scheme units, and the personal scheme investments held by the founder family, directors, key personnel and fund managers of the PPFAS Asset Management Private Limited (the AMC).

Skin in the Game on WebNotes

Skin-in-the-game rules for mutual funds

PPFAS Sponsor Commitment and Skin in the Game