Mutual Funds investor-education-funded-from

Investor education funded from TER

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SEBI requires AMCs to allocate a portion of their Total Expense Ratio (TER) toward investor education initiatives. Per the framework, 2 basis points of the AMC’s TER must be earmarked for investor-education programmes that build financial literacy among Indian retail investors. The funds support Mutual Funds Sahi Hai , AMC-specific initiatives, and Investor Awareness Programmes (IAPs).

Framework

Mandatory allocation

  • 2 basis points (0.02%) of TER must be allocated.
  • Across all schemes within an AMC.
  • Used exclusively for investor education.

Permissible uses

  • AMFI’s Mutual Funds Sahi Hai campaign.
  • AMC-specific investor education (workshops, content).
  • Investor Awareness Programmes (IAPs).
  • Print, digital, video educational content.
  • Financial literacy initiatives in T30 and B30 markets.

Prohibition

  • Cannot be used for direct scheme marketing.
  • Cannot be used for distributor incentives.
  • Must serve broad educational purpose.

Impact

Sahi Hai

The Mutual Funds Sahi Hai campaign, funded substantially from this TER allocation:

  • Industry-wide awareness building.
  • TV / digital / print campaigns.
  • Investor confidence amplification.

IAPs

  • AMC-conducted workshops.
  • Webinars on investing principles.
  • Behavioural-finance content.

Penetration

  • Increased rural / tier-3 city outreach.
  • AMFI-coordinated programs in B30 areas.
  • Supporting T30/B30 framework outreach goals.

Disclosure

  • Annual disclosure of investor-education spend.
  • Audited by AMC’s statutory auditor.
  • Reported in annual report .

Industry impact

The investor-education mandate has materially supported:

See also

External references

References

  1. AMFI public records and industry data.
  2. SEBI (Mutual Funds) Regulations 1996.
  3. Indian financial press coverage.

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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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