The Association of Mutual Funds in India (AMFI) has established a Code of Ethics that sets guidelines to ensure ethical conduct within the mutual fund industry. This code is designed to promote transparency, fairness, and accountability, fostering investor trust and confidence.
One of the key principles of AMFI’s Code of Ethics is integrity. It mandates that mutual fund houses must act in the best interest of their investors, providing accurate and honest information about their schemes. Misleading claims, exaggerated returns, or false advertisements are prohibited.
AMFI also stresses the importance of conflict of interest management. Fund houses must clearly disclose any potential conflicts, ensuring that their decisions do not favor personal or corporate interests over those of investors. This transparency builds trust and encourages responsible investment practices.
The Code of Ethics also emphasizes fair treatment for all investors, ensuring equal opportunities for investment without discrimination. It mandates that fund houses provide clear, consistent, and timely disclosures about their funds’ performance, fees, and risks.
Through these ethical standards, AMFI aims to create a secure, transparent, and investor-friendly environment, driving growth and stability in India’s mutual fund industry.
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