RTA vs AMC vs custodian: who does what in a mutual fund
The AMC manages the money, the custodian holds the assets, the RTA keeps the investor records. Here is where each one's job starts and stops.
A mutual fund is a trust. It does not run itself: the trustees and the asset management company (AMC) hire specialists for the work around the money. Three of them get confused most often. The AMC manages the money. The custodian holds the securities the money buys. The registrar and transfer agent (RTA) keeps the record of who owns how many units.
So when you buy units, the AMC decides what to buy with your money, the custodian takes delivery of those securities, and the RTA opens your folio, allots your units and sends your statement. When you redeem, the RTA processes the request and the payout goes to your registered bank account.
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The three side by side
Job in one line
AMC
Manages the scheme's money
Custodian
Holds and settles the scheme's assets
RTA
Keeps the investor and unit records
Who appoints it
AMC
The sponsor, or the trustees if the trust deed allows
Custodian
The trustees
RTA
The AMC, with the trustees' approval
Registered under
AMC
SEBI (Mutual Funds) Regulations
Custodian
SEBI (Custodian) Regulations
RTA
SEBI (Registrars to an Issue and Share Transfer Agents) Regulations
Holds
AMC
Nothing of the investor's directly; earns a fee as a percentage of AUM
Custodian
Securities, cash in settlement, and gold, silver or other assets for specific schemes
RTA
Investor data and original application documents
Can it be outsourced?
AMC
Fund management cannot
Custodian
Is itself a service provider
RTA
Is itself a service provider (transfer agency is outsourced to it)
Investor ever deals with it?
AMC
Yes: scheme choice, factsheets, complaints
Custodian
Almost never
RTA
Yes: every application, change request and statement
| AMC | Custodian | RTA | |
|---|---|---|---|
| Job in one line | Manages the scheme's money | Holds and settles the scheme's assets | Keeps the investor and unit records |
| Who appoints it | The sponsor, or the trustees if the trust deed allows | The trustees | The AMC, with the trustees' approval |
| Registered under | SEBI (Mutual Funds) Regulations | SEBI (Custodian) Regulations | SEBI (Registrars to an Issue and Share Transfer Agents) Regulations |
| Holds | Nothing of the investor's directly; earns a fee as a percentage of AUM | Securities, cash in settlement, and gold, silver or other assets for specific schemes | Investor data and original application documents |
| Can it be outsourced? | Fund management cannot | Is itself a service provider | Is itself a service provider (transfer agency is outsourced to it) |
| Investor ever deals with it? | Yes: scheme choice, factsheets, complaints | Almost never | Yes: every application, change request and statement |
What each one does
- Asset Management Company (AMC)
- The investment manager. It is set up by the sponsor, registered with SEBI, and structured as a public or private limited company whose capital comes from the sponsor and its associates. It creates and markets schemes, manages the money and reports to the trustees. Its rights and duties are set out in the Investment Management Agreement it signs with the trustees.
- Custodian
- Holds the scheme's securities and other assets and keeps them safe. It settles trades by delivering and accepting securities and cash, tracks corporate actions such as rights, bonus and buy-backs, and collects dividends, interest and redemptions on what the fund holds. It is the only constituent not directly appointed by the AMC, and the sponsor itself cannot act as the fund's custodian.
- Registrar and Transfer Agent (RTA)
- The custodian of investor data, not of assets. It records every financial transaction (purchase, redemption, switch, systematic instalment) and every non-financial one (change of bank, address, nominee), issues and redeems units, updates the unit capital account and sends account statements.
- Fund accountant
- Often confused with the RTA. The fund accountant computes AUM, NAV, the total expense ratio and commissions. The RTA uses the NAV it publishes; it does not calculate it.
What an RTA does, by who it serves
As the II-B workbook lists it.
- check_circleFor the AMC: maintains investor data at lower cost, runs offices in many cities that act as the fund's offices, sends account statements, supplies data for the Consolidated Account Statement, keeps original documents, and produces regulatory and management reports.
- check_circleFor distributors: processes their clients' purchases and redemptions, gives them a consolidated statement of each month's sales, and helps the AMC calculate and pay their commission.
- check_circleFor investors: makes forms and information available, processes financial and non-financial requests, issues account and capital gains statements, and answers queries and complaints.
- check_circleAt the counter: its Investor Service Centres (ISCs) are official points of acceptance, so a transaction handed in there is time stamped and gets the NAV the stamp decides.
Free account, this exam preselected.
CAMS and KFintech
The two leading mutual fund RTAs in India are Computer Age Management Services Limited (CAMS) and KFin Technologies Limited (KFintech). Both are Qualified RTAs (QRTAs), the category SEBI applies to an RTA servicing more than 2 crore folios of listed companies, which brings extra rules on governance, cyber security and business continuity.
Each AMC appoints one of them, so your RTA depends on the fund house, not on you. Your account statement names it. If you hold funds from several AMCs, you may be dealing with both. That is why the two built shared services: MF Central, a single platform for statements, service requests and transactions across funds, and MITRA, which lets investors search for inactive and unclaimed folios across the industry.
For a job seeker the difference matters less than it looks. The work at both is the same regulated process: the same SEBI timelines, the same KYC and payment checks, and the same NISM Series II-B certificate for staff in the mutual fund function.
Who to contact for what
| You want to | Go to |
|---|---|
| Change your bank account, address or nominee | The RTA (or the AMC, which passes it on) |
| Get an account or capital gains statement | The RTA, or MF Central for all funds |
| Know why a scheme bought or sold a stock | The AMC |
| Complain about a delayed redemption | The RTA or AMC first, then SEBI's SCORES |
| Check that the scheme's securities exist | Nobody directly: the custodian reports to the trustees, and auditors check it |
Two kinds of RTA
RTAs serve either listed companies (share registers, IPO applications, dividends) or mutual funds (folios, units, redemptions). The same company can do both. NISM tests them separately: Series II-A for corporate RTA work, Series II-B for mutual fund RTA work.
RTA, AMC and custodian questions
What is an RTA in a mutual fund?expand_more
The registrar and transfer agent: the SEBI-registered firm an AMC hires to keep its investor records. It opens folios, allots and redeems units, processes change requests and sends statements.
Is CAMS an AMC?expand_more
No. CAMS is an RTA. It manages no investor money. It processes transactions and keeps records for the AMCs that appoint it. KFintech is the same kind of firm.
Who holds my mutual fund money?expand_more
Your money buys securities that the custodian holds for the scheme. Cash moves through the scheme's own bank accounts. The RTA holds neither; it holds the record of your units.
Can the sponsor's own bank be the custodian?expand_more
The sponsor itself cannot be the custodian. A custodian in which the sponsor or its associates hold 50% or more of the voting rights may act for that sponsor's fund only under SEBI's conditions, such as at least half its directors not representing the sponsor. Check the SEBI (Mutual Funds) Regulations, 2026 for the current text.
How do I find out which RTA my fund uses?expand_more
It is printed on your account statement and in the scheme documents. You can also search your PAN on MF Central, which covers funds serviced by both QRTAs.
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