Trust structure of Indian mutual funds (sponsor, trustee, AMC, custodian)

Mon, 18 May 2026 00:00:00 +0000

The trust structure of Indian mutual funds is the governance framework under which every SEBI-registered mutual fund operates. The framework rests on a three-tier separation between the sponsor (the parent entity that establishes the mutual fund), the trustee company (which holds the fund’s assets on behalf of unitholders), and the Asset Management Company (AMC, which does the actual investment management). A custodian provides the fourth structural pillar, holding the underlying securities in safekeeping.

Mutual fund trust structure (India)

Wed, 13 May 2026 00:00:00 +0000

The mutual fund trust structure in India is the statutory three-tier arrangement under which every mutual fund is constituted as an irrevocable Indian trust under the Indian Trusts Act, 1882, with three legally distinct roles: the sponsor, the trustee, and the asset management company (AMC). The arrangement is codified in the SEBI (Mutual Funds) Regulations, 1996 , framed under the SEBI Act, 1992 , and supplemented by the requirement that the AMC be a body corporate registered under the Companies Act, 2013. Each tier carries a distinct legal capacity, eligibility test, and relationship to the unit-holder.

Trust Structure on WebNotes

Trust structure of Indian mutual funds (sponsor, trustee, AMC, custodian)

Mutual fund trust structure (India)