Multiple choice

The code of ethics for mutual funds published by AMFI

  1. is mandatory

  2. is in the form of recommended practices

  3. is unfavourable to investors

  4. does not cover distribution and selling practices

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

AMFI's code of ethics serves as a set of recommended best practices for mutual funds rather than mandatory legal requirements. This voluntary approach encourages industry participants to adopt ethical standards voluntarily while maintaining operational flexibility. The code covers various aspects including distribution and selling practices to promote investor protection.