What you can say, and what you cannot

Marketing is where many honest distributors get into trouble, usually through one careless post. The rules are not complicated. Learn the handful below and check every piece of content against them before it goes out.

Say who you are, correctly

Use the standard form “AMFI Registered Mutual Fund Distributor (ARN-xxxx)”. SEBI now requires your registered name and this line on your social media home page and at the start of every post or video. Do not use titles such as “Independent Financial Adviser”, “IFA”, “Wealth Adviser”, “Financial Adviser”, “Financial Planner” or “Wealth Manager”. Investment advice as a profession is a separate SEBI registration, and a distributor's title must not suggest otherwise.

Carry the risk disclaimer

Any communication about mutual fund investing should carry the standard line: “Mutual Fund investments are subject to market risks, read all scheme related documents carefully.” It must be readable, not hidden in tiny text, and spoken clearly in audio or video.

Never promise returns

• No “guaranteed”, “assured”, “risk-free” or “double your money”.
• No projected returns presented as likely outcomes. A calculator is fine if it is clearly labelled as an illustration at an assumed rate.
• No predictions: “markets will rise after the budget” is a promise in disguise.

Be careful with performance

Showing a scheme's past returns is where most violations happen. If you must, use the fund house's own approved material, or follow SEBI's advertising format in full, including standard periods, the benchmark, and the line “Past performance may or may not be sustained in future.” A screenshot of last year's top fund is not compliant.