Amfi directs mutual funds to show only 10-year benchmark returns in ads
Mutual Funds in India (AMFI) has made it mandatory for mutual funds to display only the benchmark 10-year compounded annual rolling returns prescribed by it for fund categories in related pamphlets and advertisements.
The returns derived by Amfi will be reviewed annually, based on the movements of the benchmarks.
Fund houses could use tools such as goal planning, and SIP/ STP/ SWP calculators which permit investors to select the return from a range of returns starting from 2 % to 13% for understanding the compounding effect, so long as such tools are not used to depict returns of any particular fund scheme.
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Earlier in March, Sebi had flagged practices by some of the asset management companies (AMCs) related to advertisements, which were not in compliance with the letter and spirit of the provisions of the Advertisement Code prescribed by the market regulator.
