What is the Association of Mutual Funds in India and what role does it play?

Established in 1995 by mutual fund houses and Asset Management Companies (AMCs), the Association of Mutual Funds in India (AMFI) is a non-profit governmental organization that serves as a key regulator under SEBI to safeguard investors’ interests and promote mutual funds in India.

What role does AMFI play?

AMFI defines and implements guidelines and best practices to be followed by mutual fund houses and companies. These guidelines generally cover fund management, marketing norms, investor relations, etc.

AMFI works closely with SEBI, RBI, and the finance ministry to develop and implement industry standards that promote transparency, accountability, and trust relationships between the companies and their investors. The organization is also responsible for educating the general public about the benefits and risks of investing in mutual funds and other investment practices and strategies to be followed.

To enhance accessibility to Mutual Fund investments, fund houses, trustees, advisors, intermediaries, and other relevant individuals are encouraged to register under AMFI through its official website. Currently, AMFI boasts 44 registered members, including 42 Asset Management Companies registered under SEBI.

AMFI’s objectives 

The AMFI has a number of objectives, which encompass:

1. Ensuring that Asset Management Companies (AMCs) and all stakeholders adhere to the prescribed code of conduct and standards set forth by AMFI
2. Elevating investor awareness and safeguarding their interests 
3. Enforcing disciplinary actions against those who breach the code of conduct established by AMFI
4. Providing a secure platform for investors to voice their concerns and file complaints against parties, such as fund managers, brokers, or fund houses
5. Safeguarding the interests of AMCs and representing their interests to government bodies like RBI, SEBI, etc
6. Collaborating with regulatory bodies like SEBI to review guidelines and directives and to address matters related to the mutual fund industry

AMFI Registration Number (ARN)

The mutual funds market has various brokers and agents, but fraudulent intermediaries also raise concerns. To counter this, AMFI has introduced the AMFI Registration Number (ARN) for eligible individuals or entities to carry out their designated roles without jeopardizing investors’ interests. It serves as a license to sell mutual fund units. A valid ARN is obligatory for anyone intending to sell mutual fund units.