The Association of Mutual Funds in India (AMFI) is an industry association dedicated to nurturing and developing the Indian Mutual Fund Industry professionally and ethically. To protect and promote the interest of the mutual fund industry, Asset Management Companies (AMCs), and investors, AMFI aims to enhance and maintain professional standards for the AMCs and distributors through the Code of Conduct.
AMFI functions under the supervision and guidance of its Board of Directors, which comprises directors appointed by the members. Further, its activities are generally carried out through various Committees, viz. AMFI Financial Literacy Committee, AMFI Committee on Certified Distributors, AMFI ETF Committee, AMFI Operations, Compliance & Risk, AMFI Valuation Committee and AMFI Equity CIO Committee.
Objectives of AMFI
AMFI is working as an industry body with the following objectives:
The torch bearer of the mutual fund industry
AMFI is a professional body working for its members, and the members also manage it. As the industry torchbearer, AMFI has the prime objective to define and maintain high professional and ethical standards in the mutual fund industry.
Promoting best business practices for the stakeholders
AMFI aims to recommend and promote best business practices and a code of conduct to be followed by its members and other stakeholders working in the industry, including the intermediaries involved in capital markets and financial services. AMFI has also brought out a code of ethics known as "The ACE" (Code of Ethics), which sets the benchmarks to be followed by Asset Management Companies in their dealings with investors, intermediaries and the public.
Representing the mutual fund industry at various forums
AMFI regularly interacts with the Securities and Exchange Board of India (SEBI) and represents the mutual fund industry's concerns on various matters before it. Further, AMFI is also consulted by the Government for any proposed issues concerning the mutual fund industry, including inviting suggestions for the Union Budget to grow the mutual fund industry. AMFI makes representations to the Government, RBI (Reserve Bank of India), and other bodies on matters impacting the mutual fund industry.
Investor awareness
AMFI holds nationwide investor awareness programmes to help investors better understand capital markets and mutual funds. It also works on the broader publicity of mutual funds as an investment product. "Mutual Funds Sahi Hai" is a well-known and popular mutual fund awareness campaign that AMFI initiated across print and electronic media. The campaign has been highly successful, as evident from stable and consistent SIP inflows.
Statistician for the mutual fund industry
AMFI also acts as the statistician for the mutual fund industry to disseminate various data points related to the industry, including AUM data, monthly SIP inflows, details on mutual fund schemes (category-wise), new schemes launched, etc.
The data is compiled by AMFI based on member AMCs' inputs and is released for wider public dissemination on their website. The data acts as a reliable source of information for anyone reporting the data regarding the mutual fund industry.
SEBI has also entrusted AMFI to publish the list of large-cap, mid-cap and small-cap companies on a semi-annual basis based on their average market capitalisation. Such a list, updated at the end of June and December every year, is used by the AMCs to categorise companies accordingly for their respective schemes. AMFI is also engaged in undertaking studies and research directly and in association with other bodies.
Regulating distributors
All mutual fund distributors (MFDs) must register themselves with AMFI. Once an individual or an entity applies for ARN (AMFI Registration Number), it also undertakes to abide by the body's code of conduct for distributors. Having a universal code of conduct helps create a level-playing field for all the MFDs and ensures the protection of investor interest on a broader basis. AMFI can also initiate disciplinary actions (including cancellation of ARN) for violations of the Code of Conduct by the MFDs.
Investor protection
AMFI also plays a vital role in protecting the interest of investors and unitholders. Further, if any event in the industry may adversely impact investors, AMFI also aims to represent the case before regulators collectively.
AMFI has been essential in consolidating the mutual fund industry and taking care of the industry's interests on different platforms. It has always aimed for professional and ethical practices amongst the AMCs and Mutual Fund Distributors, thereby playing an essential role in protecting investors' interests.
Disclaimer-
This article is for information purposes only. For more details, please visit the AMFI website:
https://www.amfiindia.com/
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
To know about the KYC documentary requirements and procedure for change of address, phone number, bank details, etc. please visit https://www.utimf.com/servicerequest/kyc. Please deal with only registered Mutual funds, details of which can be verified on the SEBI website under "Intermediaries/market Infrastructure Institutions". All complaints regarding UTI Mutual Fund can be directed towards service@uti.co.in and/or visit www.scores.gov.in (SEBI SCORES portal). This material is part of Investor Education and awareness initiative of UTI Mutual Fund.
