What is fund accounting in investment banking

Fund accounting in investment banking is a specialized accounting system used to track and manage the financial activities of investment vehicles such as mutual funds and private equity. Unlike traditional corporate accounting, it prioritizes accountability to investors and transparency over general profitability. Main responsibilities include:

• Calculating the Net Asset Value (NAV) to determine per-unit pricing for investors.
• Maintaining detailed records of assets, income, and operating expenses.
• Ensuring strict compliance with regulatory standards set by authorities like SEBI.
• Managing investor-level transactions, including capital calls and distributions, to ensure accurate allocation of returns.