Advertisements by Mutual Funds

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....BI had earlier issued a set of guidelines on the captioned subject vide Circular No. MFD/CIR/4/51/2000 dated June 05, 2000. With an objective to improve the standard of disclosures in advertisements, effective implementation of regulatory intent and to remove difficulties in the application of Regulations, the following guidelines are being issued after consultation with AMFI, in accordance wit....

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....cers shall ensure that the statement appearing in such advertisements are in legible font.   2.  Advertisements through Audio-Visual Media Likewise, in advertisements through audio-visual media like television, a statement "Mutual Fund investments are subject to market risks, read the offer document carefully before investing" shall be displayed on the screen for at least 2 se....

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....ature. With a view to broaden the definition of sales literature as specified in the Guidelines, it is clarified that it shall also include fund fact sheets, research reports, newsletters, performance reports or summaries, telemarketing scripts, seminar texts, press releases and reprints or excerpts of any other advertisements or published article, etc. 4.  Performance Advertisements ....

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....e advertising simple annualized returns of such schemes based on a period of 30 days can also advertise simple annualized returns based on 15 day period. (iii)  Impact of Distribution Taxes: While advertising returns by assuming reinvestment of dividends, if distribution taxes are excluded while calculating the returns, this fact may also be disclosed. (iv)  Pay-out of ....