Association of Mutual Funds in India (2024)

FAQs

How many associations of mutual funds are there in India? ›

The Association of Mutual Funds in India (AMFI) is an association of all the Asset Management Companies (AMCs) of SEBI registered mutual fund houses in India. AMFI was incorporated on 22^nd August 1995 as a non-profit organization. As of December 2022, AMFI has 46 Asset Management Companies as its members.

The role of AMFI, inter-alia, is to (i) address the issues and challenges concerning the mutual fund industry to facilitate ease of doing business for its members, unitholders and various stakeholders; (ii) liaison / advocacy with the SEBI/ Reserve bank of India, Government of India etc.

There are forty-four registered asset management companies in India. These companies manage investors' funds - invest in various securities to generate optimal returns. Always check the registration and track record of the AMC company before you invest.

AMFI and SEBI (Securities and Exchange Board of India) are distinct entities in the Indian financial market. AMFI is an industry association representing mutual fund companies and working towards industry development. Conversely, SEBI is the overall regulator of the securities market, including mutual funds.

SEBI is the government agency in India that oversees mutual fund regulation. The Securities and Exchange Board of India (SEBI) oversees and regulates all elements of mutual funds, including their operations, investing criteria, and disclosure obligations.

SEBI and AMFI have established requirements for obtaining an ARN code. The following individuals are qualified to receive an ARN in accordance with these guidelines: Any of the following individuals who are at least 18 years old and have passed the NISM (National Institute of Securities Market) Certification.

Are mutual funds safe? All investments carry some risk, but mutual funds are typically considered a safer investment than purchasing individual stocks. Since they hold many company stocks within one investment, they offer more diversification than owning one or two individual stocks.

What is the difference between AMFI and AMC? ›

All the Asset Management Companies are governed by SEBI and AMFI. Securities and Exchange Board of India (SEBI) is the Indian Capital Market Regulator which governs and controls every AMC in India. The Association of Mutual Funds in India (AMFI) is a statutory body formed by mutual fund companies.

The rule of 8-4-3 for mutual funds states that if you invest Rs 30,000 monthly into an SIP with a return of 12% per annum, then your portfolio will add Rs 50 lacs in the first 8 years, Rs 50 lacs in the next 4 years to become Rs 1 cr in total value and adds further Rs 50 lacs in the next 3 yrs to reach Rs 1.5 cr.

Here are 5 mutual fund schemes with highest 3-year returns along with their expense ratios: Quant Small Cap Fund(G) tops the chart with over 39% returns followed by Quant Mid Cap Fund(G), Nippon India Small Cap Fund(G), Quant Flexi Cap Fund(G) and Motilal Oswal Midcap Fund-Reg(G) in the same pecking order.

The minimum tenure for investment in Mutual Funds is a day and the maximum tenure is 'perpetual'.

AMFI is a representative of the RBI, SEBI, finance ministry and other bodies related to money market investments. An important role of AMFI in Mutual Funds is to distribute information about these investments and also conduct various workshops about different funds.

SEBI plays a crucial role in the Indian financial system by regulating the securities market, ensuring transparency, and protecting investors' interests. It also regulates the functioning of stockbrokers, sub-brokers, portfolio managers, and other intermediaries in the securities market.

A mutual fund is a pool of money managed by a professional Fund Manager. It is a trust that collects money from a number of investors who share a common investment objective and invests the same in equities, bonds, money market instruments and/or other securities.

A mutual fund is an investment where a bunch of people chip in money to buy different assets such as stocks, bonds, and money market instruments. The assets are managed by professional investment managers, who aim to generate returns for the investors.