About Association of mutual funds in india.
The Association of Mutual Funds in India (AMFI) is a non-profit organization that represents the mutual fund industry in India. It was established in 1995 with the aim of promoting and protecting the interests of investors, ensuring ethical practices by mutual funds, and creating awareness about mutual fund investments.
Mutual funds are investment vehicles that pool money from a group of investors to purchase various securities such as stocks, bonds, and other financial instruments. The pooled money is managed by professional fund managers who invest it in accordance with the investment objectives of the scheme.
The AMFI has played a crucial role in promoting mutual fund investments among retail investors. It has launched several initiatives to create awareness about mutual funds and educate investors about their benefits. One such initiative is "Mutual Fund Sahi Hai," which aims to simplify mutual fund investments for retail investors.
Through Mutual Fund Sahi Hai, AMFI provides information on various aspects of mutual funds such as types of schemes, risk factors, tax implications, etc. It also offers tools like SIP calculator and expense ratio calculator to help investors make informed investment decisions.
Apart from creating awareness among retail investors, AMFI also works towards ensuring ethical practices by mutual funds. It has laid down a code of conduct for its members that includes guidelines on disclosure norms, investor grievance redressal mechanism, etc.
AMFI also plays an important role in representing the interests of its members before regulatory bodies like SEBI (Securities and Exchange Board of India). It acts as a platform for its members to voice their concerns regarding regulatory issues or any other matter related to the industry.
In conclusion, AMFI has been instrumental in promoting and protecting the interests of both retail investors and its members. Its initiatives like Mutual Fund Sahi Hai have helped create awareness about mutual fund investments among retail investors while its code of conduct ensures ethical practices by its members. With increasing interest in equity markets among Indian households due to low-interest rates, AMFI's role in promoting mutual fund investments is likely to become even more critical in the coming years.