Skin in the game is important: Samir Arora proposes investors to ask fund managers about personal exposure

Underlike the importance of transparency and fairplay on the part of fund managers and brokers, Samir Arora, founder and fund manager at Helios Capital Management, has advised investors to ask the right questions before making a money movement.

Arora insisted on investors to ask assets management companies (AMCs) or their fund managers when they last invest in their fund/strategy and what percentage of their assets will be invested in the regulations they recommend.

“You must ask an AMC or its fund managers when they last invest in their fund/strategy, how much % of their assets are invested in what they/he recommend, etc.,” Arora said in a tweet.

The same also applies to the fund managers. “Likewise you can ask an asset manager who recommends a new fund/strategy, etc.- What is his personal lighting,” the tweet said.

The same principle applies to traders, he added. “You can also ask a real estate agent- how much of his personal wealth he covers through weekly options and futures etc.”

This is called ‘Skin in the Game’ in the investment view. Market regulator Securities and Exchange Board of India (Sebi) has rules that arrange this aspect.

In March, the regulator relaxed the ‘Skin In The Game’ requirements for investment funds, so that employees of the Asset Management Companies (AMCs) can be given a record contribution to the schemes in which they play a role. The revised rules came into effect from 1 April 2025.

The previous mandate required designated employees to get 20% of their reward in the units of their investment funds, to ensure that their interests are tailored to the cavities.

Read more: Sebi relaxes ‘skin in the game’ Rules for investment fund managers, makes a record contribution possible

Arora is quite active on Twitter and brings his opinion about stock markets and investment -related topics.

He recently commented on the issue of the H1-B visa, so that his opinion about what IT companies should do instead of brushing it under the carpet. Although he does not see a material impact of the H1-B Visa Executive Order of the US President Donald Trump on Indian IT companies, estimating the hit can be 5% or less. However, he advised domestic technology companies to clearly communicate how they respond to the observed threat, instead of cleaning it up by saying that the development does not matter.

Read more: H1-B Visa hit is perhaps no more than 5%, but Indian IT companies must openly tackle the American policy impact: Samir Arora

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