Maharashtra’s Charity Commissioner has allowed public trusts to allocate as much as 50% of their total funds into mutual funds and ETFs—without needing prior consent. This significant policy change streamlines the procedure, granting investment power directly to trustees. Experts estimate that this change could direct around ₹5,000–10,000 crore into mutual funds over time, given that more than 59,000 trusts are registered in the state.
Up to this point, the requirement for approval has rendered investments tedious and restricted involvement. The action is anticipated to make investing accessible for charitable organizations and may inspire other states to implement comparable changes.
This regulatory change not only broadens the opportunities for capital allocation but also enhances trust in mutual fund investments. It represents an important advancement for inclusive financial development and could trigger a fresh surge of institutional investments in the mutual fund sector, advantageous for both trustees and fund companies.
