Question 1 of 6
According to the AMFI Code of Conduct for Intermediaries, what should Mutual Fund Distributors (MFDs) do regarding scheme-related documents?
A
Only provide the Key Information Memorandum (KIM) to investors.
B
Be fully conversant with the key provisions of the SID, SAI, and KIM, and explain the key features and risks to investors.
C
Discourage investors from reading the scheme-related documents because they are too complex.
D
Provide only the abridged summary of the scheme documents.
Correct Option:
B
Explanation
Under the AMFI Code of Conduct, Mutual Fund Distributors should be thoroughly familiar with the Scheme Information Document (SID), Statement of Additional Information (SAI), and Key Information Memorandum (KIM). They are expected to explain the scheme's key features, risks, and suitability so that investors can make informed investment decisions.
