You go to a barber for a haircut and you realize that this barber goes to a different salon for his own haircut.
What would you do? I'll stop visiting his salon.
The same thing goes with Mutual Funds.
If the Fund Manager and other Key Managerial people are not investing their own money in the fund, I may not invest in that fund.
If Fund Manager has invested his own significant money, it'll help other investors build credibility.
Because he'll be working for his own money too, not just investors' money.
And I don't know a single person who'd want to lose his own money.
But how do you know that?
There's something called a SID - Scheme Information Document.
Simply type the name of your scheme in Google followed by 'scheme information document'.
Download the document. Do 'ctrl +F' and search for 'key managerial personnel' in the document.
And look at the skin-in-the-game of your Fund Manager. :-)
Did you know what SID is?