Custody vs Fund Administration – The Two Pillars of Operational Integrity

While custodians safeguard assets, fund administrators ensure accurate books. Together they form the operations core of any PMS or AIF.

Custodian Duties
• Segregated demat accounts.
• Settlement and corporate action reconciliation.

Administrator Duties
• NAV calculation and fee accruals.
• Investor reporting and audit support.

Investor Angle
Insist on SEBI-registered service providers with Big-Four auditor integration.

Key Takeaway: Strong back-office builds front-end trust.
 

Disclaimer: Educational only.