Review of advertisement guidelines for Mutual Funds
Published: Jan 16, 2017
TIOLCORP News Service
MUMBAI, JAN 16, 2017: SEBI has reviewed the guidelines for advertisements issued by Mutual Funds, so that performance related information may be disclosed in a simpler and effective manner, while providing precise & latest information to investors. Further, the Board considered that for the purpose of increasing awareness of Mutual Funds as a financial product category, celebrity endorsements of Mutual Funds may be allowed at an industry level.
Accordingly, the Board decided that:
1. While publishing performance related information in advertisement of Mutual Fund schemes:
a. Performance of Mutual Fund schemes shall be advertised in terms of CAGR for the past 1 year, 3 years, 5 years and since inception; in place of current requirement to publish scheme's returns for as many twelve month periods as possible for the past 3 years.
b. Performance advertisement of Mutual Fund schemes should provide information based on last day of month-end preceding the date of advertisement, instead of current requirement of publishing such data based on last day of preceding quarter-end.
c. Performance of other schemes managed by the fund manager shall be disclosed in a summarized manner and in internet-enabled media; Mutual Funds shall be permitted to provide an exact link to such summarized information.
2. On allowing Celebrity endorsements at industry level:
Celebrity endorsements of Mutual Funds shall be permitted at industry level; however, not for endorsing a particular scheme of a Mutual Fund or as a branding exercise of a Mutual Fund house. Further, prior approval of SEBI shall be required for issuance of such advertisements which feature celebrities.