Mutual fund advertisement standards require substantiation, clear risk disclosure, and strict controls on performance claims and rankings. Mutual fund advertisements, sales literature and related communications used to market schemes or convey performance must be substantiated by the offer documents and comply with Regulation 77 and the Advertisement Code. Communications must not omit material facts, must disclose risks, and must avoid exaggerated claims or unsupported forecasts. Specific formats are regulated: tombstone ads may give basic fund identification but not performance; product launch ads must include objectives, terms, risk factors and supporting documentation; performance ads must use prescribed yield measures, current data, appropriate benchmarks and state that past performance may not be sustained.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Mutual fund advertisement standards require substantiation, clear risk disclosure, and strict controls on performance claims and rankings.
Mutual fund advertisements, sales literature and related communications used to market schemes or convey performance must be substantiated by the offer documents and comply with Regulation 77 and the Advertisement Code. Communications must not omit material facts, must disclose risks, and must avoid exaggerated claims or unsupported forecasts. Specific formats are regulated: tombstone ads may give basic fund identification but not performance; product launch ads must include objectives, terms, risk factors and supporting documentation; performance ads must use prescribed yield measures, current data, appropriate benchmarks and state that past performance may not be sustained.
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