Multiple choice

SEBI's advertising code mandates that performance calculations in a fund's advertisement should be based on

  1. the NAV

  2. the NSE Fifty Index

  3. the BSE Sensex

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

SEBI mandates that NAV-based performance calculations be used in advertisements, not index-based comparisons. The NAV reflects the actual fund performance, whereas index comparisons (like NSE Fifty or BSE Sensex) could mislead investors if the fund's benchmark differs. Advertisements must show true fund performance, not index-relative returns.

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