The $1 trillion trust test: Why fiduciary duty is non-negotiable

The summit brought together key stakeholders from across the mutual fund ecosystem to explore how the industry can scale sustainably, encourage participation, and build long-term investor confidence.

Moneycontrol News

July 11, 2025 / 16:33 IST

Fireside Chat of Navneet Munot

What’s the unspoken question on the minds of first-time investors when they set up an SIP or switch from a savings account to a mutual fund? It’s “Will my money be safe?”

Trust is essential for India's goal to grow mutual fund AUM to $1 trillion by 2030. This is precisely why fiduciary responsibility, rather than just innovation or investment access, became a central theme at the HDFC Mutual Fund presents Moneycontrol Mutual Fund Summit 2025, powered by Axis Mutual Fund.

The summit brought together key stakeholders from across the mutual fund ecosystem to explore how the industry can scale sustainably, encourage participation, and build long-term investor confidence. It became clear that fiduciary duty, or the firm commitment to always act in the investor's best interest, is crucial for building that trust.

Navneet Munot, MD and CEO of HDFC AMC, shared his thoughts on the same during a compelling session at the summit by stating, “There can be no trade-off between the interest of unit holders and the interest of shareholders. If there is, then in the long run, neither will win.” He further added, “Trust is the oxygen of capitalism. If you don’t put it at the core, markets cannot sustain.”

He also discussed how the industry is changing. With the number of AMCs likely to surpass 60 in the next year, he urged newcomers, many from professional rather than institutional backgrounds, to understand the importance of their role. He stated, “Managing someone else’s money is one of the most noble professions in the world. We must move from building businesses to building institutions.”