Mutual Funds mf-advertising

MF advertising disclosure framework

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Indian mutual fund advertising operates under the SEBI MF Advertisement Code with extensive mandatory disclosures. The framework ensures investor protection through standardised performance presentation, risk warnings, and the famous ‘Mutual fund investments are subject to market risks’ statutory warning that appears on every MF advertisement.

Mandatory disclosures

Statutory warning

  • ‘Mutual fund investments are subject to market risks. Please read all scheme related documents carefully.’
  • Required on every advertisement.
  • Voice-over for audio / video ads.

Performance disclosure

  • Standardised trailing returns (1, 3, 5 years, since inception).
  • TRI benchmarking per TRI benchmarking rules .
  • Past-performance disclaimer.

Risk-O-Meter

Scheme essentials

  • TER (direct vs regular).
  • Fund manager name.
  • Investment objective.

Prohibitions

  • Guaranteed-return claims.
  • ‘Best fund’ claims without precise qualification.
  • Selective performance windows.
  • Misleading comparisons.

See SEBI MF advertisement code for full prohibition list.

Enforcement

AMFI Best Practice Guidelines

  • AMC internal approval required for all material.
  • Compliance review documented.
  • Records maintained for SEBI audit.

SEBI enforcement

  • Non-compliance leads to warnings, monetary penalties, suspensions.
  • Material breaches: enforcement action under SEBI Act.

Recent context

  • Social media advertising specifically scrutinised (per SEBI guidance).
  • Influencer-led campaigns require compliance review.
  • Performance claims subject to ongoing monitoring.

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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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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