Ch.3 · Custodian and RTA Functions · medium
What is the 'fund manager discretion' vs 'mandate compliance' tension in mutual fund management?
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EXPLANATION
Fund managers exercise professional judgment in security selection and portfolio construction but must operate strictly within the boundaries defined by the scheme's SID — respecting asset allocation ranges, single issuer limits, sector limits, and investment restrictions. Deviation from the mandate is a compliance violation that trustees and SEBI can act upon.
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