Young investors (and the old timers too!) – listen up!
If you are just starting out on your investment journey or have been a veteran investor with a diverse financial portfolio, it is safe to assume that you must have come across the term ‘Mutual Funds’, at least a hundred times. And while there is a lot to unpack when it comes to Mutual Funds, today we will be focused on exploring the Association of Mutual Funds in India (i.e. the AMFI) and the role it plays in this space.
We’ll start with the first question that just bubbled up in your mind – what even is the AMFI?
The AMFI is a non-profit, government organization that is the prime regulator of the Mutual Fund industry, and it operates under the guidelines of the Securities and Exchange Board of India (i.e. SEBI). According to the AMFI website, the organization is –
“Dedicated to developing the Indian Mutual Fund Industry on professional, healthy, and ethical lines and to enhance and maintain standards in all areas with a view to protecting and promoting the interests of mutual funds and their unit holders.”
The key role of the AMFI includes –
We know it sounds a bit mundane, but remember how we always say you need to do your research, gather information, and then make informed investment decisions? Well, this is your information, so bear with us!
So, the AMFI is the regulator of the Mutual Fund industry in India. But – why was it set up? – what are some of its main objectives?
The AMFI has listed 8 key objectives that are the driving force of the organization. These include –
It is important to know that SEBI is an umbrella organization that carries out similar functions as the AMFI, but the AMFI is an organization that operates specifically for the Mutual Fund industry. As a result, the Mutual Fund industry today is governed by regulations laid down by SEBI as well as the AMFI. This is why it is important to know about it and the securities it offers all you investors out there when you start investing in Mutual Funds.
And just as another disclaimer (you might have heard this one!) – Mutual Funds are subject to market risks. Please read the offer document carefully before investing!