What is AMFI?
AMFI is an abbreviation of Association of Mutual Fund in India. It is a non-profit organization formed and started its services from 22nd of August, 1995. It successfully crossed its one and a half decade in public service. The main aim and objective of this organization is to protect and promote the interest of Mutual Fund and its unit holders. This organization regulates the process, processing fee, and agent commissions etc., for its active registered Asset Management Companies. The AMFI registered AMC are the trust worth companies to invest in their Mutual Funds. It is a registered organization in Securities and Exchange Board of India (SEBI) and follows its rules and regulations releasing time to time.
Why AMFI is formed?
About five decades ago, in 1963 Reserve Bank of India initiated a plan of collecting funds from the small investors and invest in the shares, bonds and other wealth management schemes. It was started regulated by RBI itself. For such things it started a trust named Unit Trust of India. Through this trust it collected money from the investors and invested in different areas as mentioned above. This starts attracts mostly small and medium level investors, as they do not want to follow the market and take more risk on their investment to fetch high returns. As there were many AMC started to plan for such schemes and entered the SEBI took over the regulatory measures of mutual funds. Later AMFI formed in 1995 and started it services along with SEBI as a division of it. To implement the strict rules formed by the SEBI in the market AMFI formed and keep informing the investors about the scheme and its status.
How AMFI functions?
AMFI formulated rules and regulations, which follows SEBI rules and regulations, to be followed by the registered Asses Management Companies while coming into the paid service for public. It also formulates the documents need to be prepared and submitted for the approval for every schemes an AMC is introducing. The documents include all the information regarding the investments a scheme is planning for and how the AMC has planned to promote it. The AMC should also have limits to announce the percentage of interest a scheme can offer. It cannot be very low as it may not attract the investors and cannot be very high as no one can predict the market. As everyone notes that in all mutual fund advertisements the same slogan "Mutual Fund investments are subjected to market risks" cannot be missed out. If any AMC found not following the regulations AMFI has all rights to action against it. If any complaints received from any one of the investors about a scheme or a AMC, AMFI has all rights to investigate it and order the AMC to correct it or sometimes to close the scheme which creates more problem and return back the investments to investors with bank interests. In short, the AMFI is the organization to take care of the investors and their investments. This makes the MF investments less risky comparing to direct investments in the Equity.
Registered Asset Management Companies under AMFI
At present there are 44 companies registered with AMFI as Asset Management Companies (AMC). There are three categories under AMFI members like Bank sponsored companies, Institutions and Private sectors. Under these it is sub divided as Indian, Foreign and Joint ventures. Indian bank sponsored companies like Canara Robeco Asset Management Company Limited, SBI Fund management private limited have more trust for investments as they are bank sponsored. IDBI Asset Management Ltd. and UTI Asset Management Company Ltd are also trust worth as they are the companies in this field for very long years.
Institution category has LIC NOMURA Mutual Fund Asset Management Company Limited only, which can also be trusted for risk free investments as they were not try to attract peoples with false or hidden information.
Private sector category consists of many companies like Axis Asset Management Company, Reliance Capital Asset Management Company, ICICI Prudential Asset Management Company, HDFC Asset Management Company are some of the trust worth companies in India to invest in their schemes.
The above mentioned companies are just a suggestion and need to be investigate the factors by the investors before invest.
The lists of all members are listed under the Information Zone in AMFI Members topic in AMFI website. Please refer to that before invest in any companies.
Website of AMFI
The website address of AMFI is linked with this article at the end. The website will have all the information regarding the registered members and its head. It also has all the open ended and closed ended schemes and its latest NAV. The website has all information and latest happenings as a Monthly updates and Quarterly updates. We can refer this site for the regulations and important changes announced by AMFI. In short an investor can have all the details about a company and its schemes from top to bottom through this website. It will be very useful for keep track of our investment status.
AMFI Contact Information
The latest contact information will be available in AMFI website along with Google Map
ASSOCIATION OF MUTUAL FUNDS IN INDIA
ONE INDIABULLS CENTRE,
TOWER 2, WING B, 701, 7TH FLOOR,
841 SENAPATI BAPAT MARG,
MUMBAI - 400 013
Office is open from Monday to Friday between 10 a.m. and 6 p.m. (Except on Public Holidays)
Telephone Numbers: 24210093/ 24210383/ 43346700
Fax Numbers: 43346712/ 43346722
Email ID: email@example.com
Other useful links for the new Mutual Fund investors
AMFI Website: http://www.amfiindia.com