Association of Mutual Funds in India or AMFI is a non-profit government organization which came into existence on 22nd August 1995 and is listed under SEBI (Securities and Exchange Board of India).
It was set up for setting ethical and transparent regulations and for the development of the Mutual fund industry in India.
It aims to develop the Indian Mutual Funds industry on ethical, professional and healthy lines.
AMFI also looks into protecting and promoting the interest of mutual fund holders.
Every fund house, trustee, agent and adviser in India must be registered with AMFI as it makes investments transparent and more accessible.
You can find them on the government website.
Currently there are 44 members out of which 42 are SEBI registered Asset Management Companies which are registered with AMFI.
Objectives of AMFI
- To ensure uniform, ethical and professional standards for every mutual fund operating under it.
- To ensure that members and investors maintain ethical practices in their operations.
- To ensure compliance of the mutual funds regulations set by SEBI.
- To ensure all the bodies like AMCs, distributors, agents, etc. involved in the capital market or financial services comply with the guidelines set by the association.
- It represents the Finance Ministry, RBI and SEBI on matters related to the industry.
- To spread awareness among investors regarding safe investments in mutual funds.
- To spread information regarding mutual funds.
- To conduct research and workshops regarding mutual fund investments.
- To keep a check on the code of conduct of fund houses.
- To take disciplinary actions in case of any misconduct by any of the institution involved in mutual fund investments.
- To solve the grievances of the investors and to register their complaints against a mutual fund manager or a fund house.
- Protect and safeguard the interest of the investors and AMCs.
AMFI Registration Number (ARN)
It is a unique number which is assigned to mutual fund agents, brokers and distributors.
Agencies or brokers who have cleared the NISM Certification can only get an ARN number.
The ARN ID card is issued to companies or individuals which are engaged in mutual fund trading in India.
It contains the name of the AMC, photograph, ARN Number, and the address of the corporate and the validity of the ARN ID card.
With an ARN number, it becomes easier for the investors to cross-check about the mutual fund broker or the AMC.
How AMFI helps investors?
AMFI comprises of a sponsor, a trustee and an asset management company and is regulated by SEBI.
The investors invest in mutual funds to get maximum profit.
It is therefore the responsibility of AMFI to ensure that both the investors and the mutual fund industry gets the maximum profit. AMFI has a team of experts who act as trustees.
These experts try to find out that in which mutual fund industry the funds should be invested and at what time so that everyone is in a win-win situation.
In case the investors face a loss and question the investment process, then the team is liable to give the reasons for the loss.
