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Mutual fund investors should follow these points and stay away from misleading adverts 

When investors invest their hard-earned money in mutual funds, they get carried away with assurances of high returns, which do not see the light of the day.

In the view of this,  Sebi wrote to the Association of Mutual Funds in India to intimate fund houses to refrain from highlighting assured returns in their adverts.


In the letter, SEBI observed that fund houses include certain illustrations that can “lead investors to believe that they will be receiving fixed returns for their investments”


Equities, debt, bank deposits, gold, real estate, and other fixed-income instruments can be included in an asset mix.


On this, investment advisors point out that the fund houses should not project high returns based on their past returns.


Investors should, therefore, be aware of these points: First: The past returns given by mutual funds is an indication of how they have performed in the past. This does not mean an assurance of future returns.

Second There is no concept of “assured returns” of mutual fund houses when the investment is made in the equity and equity-related instruments.

Third: The timeless principle of investing i.e., risk and reward go hand in hand. When you want to earn higher returns, you will have to take a higher risk. 

Click here to know more about investing in mutual funds.

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Mutual fund investors should follow these points and stay away from misleading adverts

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Mutual fund investors should follow these points and stay away from misleading adverts

The capital markets regulator recently told the mutual fund houses to refrain from depicting future returns on the basis of assumptions and projections. The investors, therefore, are meant to be more careful about where they decide to invest

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