{"id":592,"date":"2026-04-29T11:00:47","date_gmt":"2026-04-29T05:30:47","guid":{"rendered":"https:\/\/prodigypro.co.in\/blog\/?p=592"},"modified":"2026-04-29T11:10:52","modified_gmt":"2026-04-29T05:40:52","slug":"what-is-a-mutual-fund-custodian","status":"publish","type":"post","link":"https:\/\/prodigypro.co.in\/blog\/what-is-a-mutual-fund-custodian\/","title":{"rendered":"What Is a Mutual Fund Custodian? Role, Responsibilities &amp; Importance Explained"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/04\/Portfolio-Turnover-Explained-58-1024x576.webp\" alt=\"Mutual Fund Custodian\" class=\"wp-image-594\" srcset=\"https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/04\/Portfolio-Turnover-Explained-58-1024x576.webp 1024w, https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/04\/Portfolio-Turnover-Explained-58-300x169.webp 300w, https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/04\/Portfolio-Turnover-Explained-58-768x432.webp 768w, https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/04\/Portfolio-Turnover-Explained-58-1536x864.webp 1536w, https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/04\/Portfolio-Turnover-Explained-58-2048x1152.webp 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-mutual-fund-custodian\/#Mutual_Fund_Custodian\" >Mutual Fund Custodian<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-mutual-fund-custodian\/#What_is_a_Mutual_Fund_Custodian\" >What is a Mutual Fund Custodian?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-mutual-fund-custodian\/#Why_Is_a_Custodian_Important_in_Mutual_Funds\" >Why Is a Custodian Important in Mutual Funds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-mutual-fund-custodian\/#Key_Responsibilities_of_a_Mutual_Fund_Custodian\" >Key Responsibilities of a Mutual Fund Custodian<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-mutual-fund-custodian\/#Difference_Between_a_Custodian_and_a_Fund_Manager\" >Difference Between a Custodian and a Fund Manager<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-mutual-fund-custodian\/#Regulatory_Framework_for_Custodians_in_India\" >Regulatory Framework for Custodians in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-mutual-fund-custodian\/#How_Does_a_Custodian_Ensure_Transparency_and_Security\" >How Does a Custodian Ensure Transparency and Security?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-mutual-fund-custodian\/#Who_Can_Act_As_A_Mutual_Fund_Custodian\" >Who Can Act As A Mutual Fund Custodian?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-mutual-fund-custodian\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-mutual-fund-custodian\/#Can_a_mutual_fund_exist_without_a_custodian\" >Can a mutual fund exist without a custodian?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-mutual-fund-custodian\/#Can_custodians_invest_or_move_my_money\" >Can custodians invest or move my money?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-mutual-fund-custodian\/#Can_I_choose_my_mutual_funds_custodian\" >Can I choose my mutual funds custodian?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-mutual-fund-custodian\/#How_do_custodians_safeguard_against_fraud\" >How do custodians safeguard against fraud?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-mutual-fund-custodian\/#Are_custodians_responsible_if_my_assets_are_lost\" >Are custodians responsible if my assets are lost?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Mutual_Fund_Custodian\"><\/span>Mutual Fund Custodian<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When investors invest in a mutual fund, they are entrusting the fund house with their hard-earned money while expecting that money will be properly managed and in the safest way possible.<\/p>\n\n\n\n<p>Investors inherently have trust in the fund managers who are committed to making the investment decision for the mutual fund, but there is another essential stakeholder behind the scenes who works to protect the safety of investors\u2019 money: the <strong>mutual fund custodian<\/strong>.<\/p>\n\n\n\n<p>A mutual fund custodian is a financial institution that is responsible for the custody of the fund&#8217;s assets, which maintains records and ensures compliance with regulations.&nbsp;<\/p>\n\n\n\n<p>In this article, we will discuss the mutual fund custodian\u2019s role, who they are, what they do, how they work apart from fund managers, the regulations they are governed by, and their importance in protecting mutual fund transactions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_Mutual_Fund_Custodian\"><\/span><strong>What is a Mutual Fund Custodian?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A mutual fund custodian is a financial institution that is responsible for holding and safeguarding the securities of the mutual fund. The mutual fund needs custodians because they protect assets and manage them properly while ensuring accurate accounting flows.<\/p>\n\n\n\n<p>A financial institution serving as custodian must be registered with the authorities to provide custodial services along with holding the role of a bank or other regulated entity. Mutual funds&#8217; assets undergo safekeeping by custodians who handle security documents such as stocks and bonds yet these banks and financial entities do not designate investment locations (fund managers do).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Is_a_Custodian_Important_in_Mutual_Funds\"><\/span><strong>Why Is a Custodian Important in Mutual Funds?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The presence of a custodian in mutual funds is vital for several reasons:<\/p>\n\n\n\n<p>1. <strong>Asset protection:<\/strong>&nbsp;<\/p>\n\n\n\n<p>Custodians provide security and separate funds from fund managers.&nbsp;<\/p>\n\n\n\n<p><strong>2. Regulatory compliance:&nbsp;<\/strong><\/p>\n\n\n\n<p>They carry out legal transactions to adhere to regulations.<\/p>\n\n\n\n<p><strong>3. Transparency and accountability:&nbsp;<\/strong><\/p>\n\n\n\n<p>Custodians establish proper records and provide trust and credibility to the investor.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Responsibilities_of_a_Mutual_Fund_Custodian\"><\/span><strong>Key Responsibilities of a Mutual Fund Custodian<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>1. Safekeeping of Assets:&nbsp;<\/strong><\/p>\n\n\n\n<p>Custodians ensure the physical or electronic safekeeping of all securities that mutual funds hold, including verification and documentation.<\/p>\n\n\n\n<p><strong>2. Trade Settlement:&nbsp;<\/strong><\/p>\n\n\n\n<p>After the fund manager places a buy order or a sell order (to buy or to sell for the mutual fund), custodians ensure proper settlement through clearing agencies and that the transaction\/transfers are timely settled.<\/p>\n\n\n\n<p><strong>3. Recordkeeping and Reconciliation:&nbsp;<\/strong><\/p>\n\n\n\n<p>Custodians ensure that accurate recordkeeping of the activity of the fund, and holdings of the fund, while also periodically reconciling their records with fund manager records.<\/p>\n\n\n\n<p><strong>4. Compliance with Regulator:&nbsp;<\/strong><\/p>\n\n\n\n<p>Custodians perform due diligence to support mutual fund managers, ensuring that all transactions and processes follow the regulatory requirements set out by regulators like SEBI (in India) and other financial authorities.<\/p>\n\n\n\n<p><strong>5. Income Collection:&nbsp;<\/strong><\/p>\n\n\n\n<p>Custodians are responsible for administering dividends, interest, or other income of mutual funds.<\/p>\n\n\n\n<p><strong>6. Cash Segregation:&nbsp;<\/strong><\/p>\n\n\n\n<p>Custodians maintain an accurate, rigorous and strict segregating of mutual fund cash from clients other assets (if applicable) or from their own assets.<\/p>\n\n\n\n<p><strong>7. Valuation Support:&nbsp;<\/strong><\/p>\n\n\n\n<p>Custodians supply accurate data on holdings and transactions to assist with the determination or calculation of the mutual fund&#8217;s daily Net Asset Value (NAV).<\/p>\n\n\n\n<p><strong>8. Audit Support:&nbsp;<\/strong><\/p>\n\n\n\n<p>Custodians engage with external auditors by providing adequate records and reports in the regular routine for audits or inspection by regulated authorities.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Difference_Between_a_Custodian_and_a_Fund_Manager\"><\/span><strong>Difference Between a Custodian and a Fund Manager<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Aspect<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Fund Custodian<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Fund Manager<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Role<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">Safeguards and protects assets<\/td><td class=\"has-text-align-center\" data-align=\"center\">Manages the investment decision and strategy<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Responsibilties<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">Asset segregation, recordkeeping, and regulatory compliance<\/td><td class=\"has-text-align-center\" data-align=\"center\">Asset allocation, portfolio management, investment decisions<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Decision Making<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">Does not make investment decisions<\/td><td class=\"has-text-align-center\" data-align=\"center\">Makes all decisions related to buying and selling of investments<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Focus<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">Ensures the safety and proper administration of assets<\/td><td class=\"has-text-align-center\" data-align=\"center\">Aims for financial returns by investing in assets<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Regulatory Compliance<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">Ensures adherence to legal and regulatory norms<\/td><td class=\"has-text-align-center\" data-align=\"center\">Operates under the guidelines set by the custodian and regulatory authority<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Relationship with Assets<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">Holds assets in safekeeping and prevents misuse<\/td><td class=\"has-text-align-center\" data-align=\"center\">Decides on which assets to buy, hold, or sell<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Investor Interaction<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">Does not interact with investors directly<\/td><td class=\"has-text-align-center\" data-align=\"center\">Interacts with investors, provides updates, and reports on performance<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Regulatory_Framework_for_Custodians_in_India\"><\/span><strong>Regulatory Framework for Custodians in India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Securities and Exchange Board of India (SEBI) controls mutual fund custodians operating in India. All custodians operating in India must maintain SEBI registration while they conduct their business under defined norms across capital adequacy, internal controls, risk management, and reporting requirements. Transparency and accountability for custodians are achieved through the guidelines established by SEBI.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_a_Custodian_Ensure_Transparency_and_Security\"><\/span><strong>How Does a Custodian Ensure Transparency and Security?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Regulatory procedures define the steps custodians need to follow when keeping records while conducting asset verification tasks and reporting to authorities. Real-time reconciliation and daily reporting enable custodians to maintain complete transparency in the management of assets.&nbsp;<\/p>\n\n\n\n<p>Fund custodians protect investor data and fund details through multiple security precautions, including cryptographic methods, together with controlled system access protocols and safe transmission protocols.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_Can_Act_As_A_Mutual_Fund_Custodian\"><\/span><strong>Who Can Act As A Mutual Fund Custodian?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In India, only three kinds of entities can function as mutual fund custodians:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Scheduled Commercial Banks<\/li>\n\n\n\n<li>SEBI-registered Financial Institutions&nbsp;<\/li>\n\n\n\n<li>Entities with Net Worth as Mandated by SEBI<\/li>\n<\/ul>\n\n\n\n<p>Any institution performing custodial duties needs to have a strong infrastructure, together with trained employees, and must follow the legal standards and technical requirements essential for large-scale fund management.<\/p>\n\n\n\n<p>Additionally, As of July 2023, SEBI proposed increasing the minimum net worth requirement for custodians from \u20b950 crore to \u20b9100 crore to enhance financial stability and investor protection.&nbsp;<\/p>\n\n\n\n<p><strong>Also, Check &#8211; <a href=\"https:\/\/prodigypro.co.in\/blog\/calculate-brokerage-in-the-share-market\/\">How to Calculate Brokerage in the Share Market<\/a><\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Mutual fund operations require fund managers to receive attention, yet custodians maintain equal importance by upholding security and compliance, and operational visibility.&nbsp;<\/p>\n\n\n\n<p>Mutual fund custodians serve as financial protectors who oversee the management of investments through proper protection and audit procedures that meet regulatory standards. The existence of custodians enables mutual funds to function due to the trust they create within this financial ecosystem.<\/p>\n\n\n\n<p>Please share your thoughts on this post by leaving a reply in the comments section. Contact us via phone,<a href=\"http:\/\/wa.me\/917347700888\" target=\"_blank\" rel=\"noreferrer noopener\">&nbsp;WhatsApp<\/a>, or email to learn more about mutual funds, or visit our website,<a href=\"https:\/\/prodigypro.co.in\/\">&nbsp;Prodigy Pro<\/a>. Alternatively, you can download the<a href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.bfc_mf.prodigy_app&amp;pcampaignid=web_share\" target=\"_blank\" rel=\"noreferrer noopener\">&nbsp;Prodigy Pro<\/a>&nbsp;app to start investing today!<\/p>\n\n\n<div ><style>#sp-ea-591 .spcollapsing { height: 0; overflow: hidden; transition-property: height;transition-duration: 300ms;}#sp-ea-591.sp-easy-accordion>.sp-ea-single {margin-bottom: 10px; border: 1px solid #e2e2e2; }#sp-ea-591.sp-easy-accordion>.sp-ea-single>.ea-header a {color: #ffffff;}#sp-ea-591.sp-easy-accordion>.sp-ea-single>.sp-collapse>.ea-body {background: #fff; color: #444;}#sp-ea-591.sp-easy-accordion>.sp-ea-single {background: #7c8cff;}#sp-ea-591.sp-easy-accordion>.sp-ea-single>.ea-header a .ea-expand-icon { float: left; color: #444;font-size: 16px;}<\/style><div id=\"sp_easy_accordion-1777437933\"><div id=\"sp-ea-591\" class=\"sp-ea-one sp-easy-accordion\" data-ea-active=\"ea-click\" data-ea-mode=\"vertical\" data-preloader=\"\" data-scroll-active-item=\"\" data-offset-to-scroll=\"0\"><div class=\"ea-card ea-expand sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"Can_a_mutual_fund_exist_without_a_custodian\"><\/span><a class=\"collapsed\" id=\"ea-header-5910\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse5910\" aria-controls=\"collapse5910\" href=\"#\" aria-expanded=\"true\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-minus\"><\/i> Can a mutual fund exist without a custodian?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse collapsed show\" id=\"collapse5910\" data-parent=\"#sp-ea-591\" role=\"region\" aria-labelledby=\"ea-header-5910\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">No, regulations require that all mutual funds have a custodian to hold the assets.<\/span><\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"Can_custodians_invest_or_move_my_money\"><\/span><a class=\"collapsed\" id=\"ea-header-5911\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse5911\" aria-controls=\"collapse5911\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> Can custodians invest or move my money?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse5911\" data-parent=\"#sp-ea-591\" role=\"region\" aria-labelledby=\"ea-header-5911\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">No, custodians only process transactions that are authorized by the fund manager.<\/span><\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"Can_I_choose_my_mutual_funds_custodian\"><\/span><a class=\"collapsed\" id=\"ea-header-5912\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse5912\" aria-controls=\"collapse5912\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> Can I choose my mutual funds custodian?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse5912\" data-parent=\"#sp-ea-591\" role=\"region\" aria-labelledby=\"ea-header-5912\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">No, custodians are designated for each mutual fund by the fund house, not the investor.<\/span><\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"How_do_custodians_safeguard_against_fraud\"><\/span><a class=\"collapsed\" id=\"ea-header-5913\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse5913\" aria-controls=\"collapse5913\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> How do custodians safeguard against fraud?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse5913\" data-parent=\"#sp-ea-591\" role=\"region\" aria-labelledby=\"ea-header-5913\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">Custodians have secure systems in place, they conduct periodic audits, and they provide compliance checks for calls to action.<\/span><\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"Are_custodians_responsible_if_my_assets_are_lost\"><\/span><a class=\"collapsed\" id=\"ea-header-5914\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse5914\" aria-controls=\"collapse5914\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> Are custodians responsible if my assets are lost?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse5914\" data-parent=\"#sp-ea-591\" role=\"region\" aria-labelledby=\"ea-header-5914\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">Yes, custodians are responsible if the loss is a result of their negligence or failure to comply.<\/span><\/p><\/div><\/div><\/div><\/div><\/div><\/div>\n\n\n<p><strong>Disclaimer \u2013 <\/strong>This article is for educational purposes only and does not intend to substitute expert guidance. Mutual fund investments are subject to market risks. Please read the scheme-related document carefully before investing.&nbsp;<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mutual Fund Custodian When investors invest in a mutual fund, they are entrusting the fund house with their hard-earned money while expecting that money will be properly..<\/p>\n","protected":false},"author":1,"featured_media":594,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[912,910,913,914,911,398,381,915,665,909,916],"class_list":["post-592","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-asset-protection","tag-custodian-meaning","tag-custodian-responsibilities","tag-financial-institutions","tag-fund-custodian-role","tag-fund-management","tag-investment-guide","tag-investment-safety","tag-mutual-fund-basics","tag-mutual-fund-custodian","tag-mutual-fund-guide"],"_links":{"self":[{"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/posts\/592","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/comments?post=592"}],"version-history":[{"count":3,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/posts\/592\/revisions"}],"predecessor-version":[{"id":597,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/posts\/592\/revisions\/597"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/media\/594"}],"wp:attachment":[{"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/media?parent=592"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/categories?post=592"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/tags?post=592"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}