SEBI asks MFs to not mislead investors with wrong ads

[ad_1]

Some MF brochures and illustrations are giving the impression that returns are assured if someone starts a SIP (systematic investment plan) and then after three or so years, starts an SWP (systematic withdrawal plan), Sebi said in a letter to the Association of Mutual Funds of India.

“Such disclosures/advertisements are ambiguous and likely to be misunderstood by the investors,” SEBI said. (Express Photo)

Market regulator SEBI has asked mutual fund houses to stop misleading advertisements, brochures and presentations that give the impression of offering fixed returns to the investors.

Some MF brochures and illustrations are giving the impression that returns are assured if someone starts a SIP (systematic investment plan) and then after three or so years, starts an SWP (systematic withdrawal plan), Sebi said in a letter to the Association of Mutual Funds of India.

“Such disclosures/advertisements are ambiguous and likely to be misunderstood by the investors,” SEBI said.

SEBI had recently asked mutual fund companies to keep the small-town linked incentive structure in abeyance, citing the lack of a system-driven mechanism to check the misuse of this incentive structure.

© The Indian Express (P) Ltd

[ad_2]

Source link