Mutual Fund

MF trustees will play an even more strategic role by balancing innovation with integrity

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Addressing the SEBI Leadership Dialogue for Trustees of Mutual Fund, SEBI Chairman Tuhin Kanta Pandey said the strength of our capital markets does not rest only on regulations or returns, but on the trust that the system will always act in the best interest of investors.

He said trustees are the backbone of investor confidence and their role is not ceremonial; rather it is fiduciary, moral, and institutional and over the years, this collective trust has transformed India’s mutual fund landscape.

Pandey highlighted the growth and change in perception of the industry and said that mutual fund was once a niche savings route, but now it has become a powerful instrument of wealth creation for many, from small households investing through SIPs to large institutions building long-term portfolios.

He pointed out that over the past decade, the industry’s Assets Under Management have grown sixfold, from around Rs. 12 lakh crore to Rs. 75.6 lakh crore as of September 2025 and the unique investors have grown from about 1 crore a decade ago to over 5.6 crore today. Monthly SIP flows, which were about Rs. 3,000 crore in April 2016, have now crossed Rs. 28,000 crore.

Mutual fund trustees as custodians of trust

According to him three simple but powerful principles define the trustee’s role are:

Independence —not just in name, but in judgment and action.

Oversight —not just reactive, but proactive.

Accountability —not just to the regulator, but to every unitholder whose savings they safeguard.

Trustee’s expanding mandate — Key dimensions of oversight

Fiduciary and regulatory compliance

Trustees ensure that every AMC’s operation aligns with SEBI regulations and the fund's stated objectives.

Operational vigilance