AMFI advertisement code

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The AMFI Advertisement Code is a set of rules issued by the Association of Mutual Funds in India (AMFI) that governs the content, presentation, approval, and publication of all advertising and promotional material produced by SEBI-registered asset management companies (AMCs) and their authorised ARN-registered distributors. The code is a mandatory compliance obligation for all AMFI members and is grounded in the AMFI Code of Ethics (ACE) and Best Practice Guidelines (BPG).

The Advertisement Code aligns with SEBI’s own guidelines on mutual fund advertising and complements other disclosure frameworks including the Risk-O-Meter display requirements and the standardised factsheet template.

Scope of application

The Advertisement Code applies to all forms of advertising and promotional communication, including:

  • television commercials;
  • print advertisements (newspapers, magazines);
  • digital advertising (social media, display ads, search ads, video platforms);
  • outdoor advertising (hoardings, transit advertising);
  • sales and marketing brochures and leaflets;
  • website content intended to promote schemes;
  • email and SMS campaigns; and
  • event sponsorships and exhibitions where scheme-specific promotion occurs.

It does not apply to investor education content that is purely generic (not promoting a specific AMC or scheme) and educational seminars that comply with SEBI’s investor education guidelines.

Key provisions

Mandatory statutory warning

Every mutual fund advertisement in India must carry the following statutory warning (or an approved abbreviated version where space constraints apply):

“Mutual Fund investments are subject to market risks, read all scheme related documents carefully.”

In television and video advertising, this warning must be read aloud (voice-over) as well as displayed in text. In print and digital, it must be in a minimum specified font size. The warning cannot be rendered in a colour or font that makes it less legible than surrounding text.

Accurate performance claims

  • Past performance data used in advertising must be presented for standard time periods (1 year, 3 years, 5 years, since inception) and must include the corresponding benchmark return for the same periods.
  • Point-to-point returns over cherry-picked periods that flatter the scheme are prohibited.
  • If a scheme is less than one year old, past performance data cannot be presented at all.
  • Returns must be presented as CAGR (for periods of 1 year or more) or absolute return (for periods under 1 year), and the basis must be stated.
  • Past performance must be accompanied by the disclaimer: “Past performance may or may not be sustained in the future.”

Ranking and award claims

  • AMCs may use third-party rankings (such as those from Morningstar, CRISIL, or Value Research) in advertising, but only if:
    • the ranking is current (within the last 12 months);
    • the source is clearly identified;
    • the ranking methodology is available for investor reference; and
    • the advertisement does not imply that the ranking predicts future performance.
  • Self-generated “best fund” or “top performer” claims not based on verifiable third-party data are prohibited.

Prohibited claims

The Advertisement Code explicitly prohibits:

  • any claim that returns are guaranteed or assured;
  • comparisons with bank fixed deposit returns that do not adequately disclose the difference in risk;
  • misleading use of NAV appreciation as the sole performance indicator without reference to benchmark;
  • implying that the fund is endorsed by SEBI, AMFI, or the government;
  • using the word “safe” in a context that implies absence of market risk; and
  • testimonials from investors that imply specific returns.

Risk-O-Meter display in advertising

All scheme-specific advertising must display the scheme’s current AMFI Risk-O-Meter graphic and label. This requirement, introduced as part of the 2021 Risk-O-Meter revision, ensures that the risk level is communicated even in brief advertising formats.

Approval process

The Advertisement Code requires that all advertising material for a specific scheme be reviewed by the AMC’s compliance officer before publication. For campaign-level brand advertising (not promoting specific schemes), a simplified review process applies.

AMFI does not pre-approve individual advertisements but may review advertisements post-publication in response to complaints or in its periodic monitoring exercises. AMFI’s Advertising and Communications Committee reviews systemic issues and issues guidance to AMCs.

Distributor advertising

ARN-registered distributors who run their own advertising (co-branded with AMC permission or independently) must also comply with the Advertisement Code. Distributors may not advertise specific scheme performance without the AMC’s written consent, must carry the statutory warning, and may not make any claims inconsistent with the scheme’s current Risk-O-Meter classification.

See also

References

  1. AMFI. “Advertisement Code for Mutual Funds.” amfiindia.com. Accessed 2026.
  2. SEBI. “Guidelines on Advertisement by Mutual Funds.” Circular 2014 and amendments.
  3. AMFI. “AMFI Best Practice Guidelines: advertising provisions.” amfiindia.com. Accessed 2026.

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WebNotes Editorial Team

The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

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