Stewardship of Mutual Funds / Asset Management Companies – Strengthening Corporate Governance, Safeguarding Investors Interest

Abstract

Mutual funds /Asset Management Companies (AMCs) are in the possession of pool of funds created from the investments of varying amounts from the investors. Since myriad investors from all walks of like invest their hard earned money in varied schemes of mutual funds for both long and short term with the expectations that returns from their investments will soar and financial interests will be safeguarded. In view of this, mutual funds / AMCs have fiduciary obligation towards its investors and so they need to act as 'Stewards' to ensure that the investments made in the stocks, debentures, preference shares, other financial assets of the companies are adhering to the canons of corporate governance or not so that the probability of wealth erosion of the investors is mitigated. In view of this, it generates paramount academic and research interests to reconnoitre the performance of select mutual funds / AMCs on vital yardsticks that is themes, priorities and engagements by teams.