Table of Content:
Association of Mutual Funds (AMFI) is a government-led organization in India that works as a one-stop destination for any issues that an investor may have regarding any unexpected monetary losses or concerns about the mutual fund. Statutory bodies like AMFI and Securities Exchange Board of India (SEBI) play a vital role in helping investors build faith in the market and invest in mutual funds.
Role of AMFI in a Mutual Fund
Association of Mutual Funds tends to build strong ethics and crystal clear rules and regulations in the Indian Mutual Fund domain. Every fund house, advisor, trustee and/or agent is bound to register with AMFI. The association currently has 42 SEBI registered Asset Management Companies (AMCs), which work on making investments easy and transparent for people.
The association is solely dedicated towards developing the mutual fund industry in the country professionally and ethically, while also maintaining standards in all areas. Because of the transparency it offers, it is suggested that investors check the details about the fund that they are planning to invest in at AMFI.
What are the Rights of AMFI
The Association of Mutual Funds of India (AMFI) holds the right to act upon the following-
- Define and maintain professional and ethical standards in the Indian mutual fund industry
- Recommend and promote effective business practices and code of conduct to be followed by the members of mutual funds and AMCs
- Interact with and represent to SEBI on all matters associated with the mutual fund industry
- Undertake nationwide investor awareness programmes in order to promote proper understanding of the concept and working of mutual funds
- Disseminate information on the mutual fund industry and undertake research and study in association with other bodies
- Regulate the conduct of distributors including disciplinary actions for violations of Code of Conduct
- Protect the interests of investors and/or unit holders
AMFI Registration Number
AMFI Registration Number or ARN is a unique number that is assigned to mutual fund agents, distributors, and brokers. To get an ARN number, agents, distributors and brokers need to clear the NISM Certification. It is only after the clearance of this certification that an AMC is allowed to sell or recommend a mutual fund to investors. Additionally, if you are a senior citizen, you must also pass the Continuing Professional Education or CPE.
The NISM certificate includes the name of the AMC, a photo of the cardholder, ARN number, and address of the corporate. The certificate also has a validity for 3 years, which is mentioned on it. The availability of this information justifies the association’s belief in transparency and helps investors cross check the details provided by the AMCs.
Why Should Investors Know About ARN
Mutual fund investments have, lately, acquired the interest of many investors. With the joint efforts of brokers, intermediaries and mutual fund agents, all hold the responsibility of providing information about such investments and hence, it is of utmost importance that information that is being transferred is accurate and is coming from the right sources. In order to ensure that the mutual funds are sold only by qualified professionals or organizations, AMFI allots an ARN (AMFI Registration Number). All the third party agents will have to pass a mandatory qualification test after registering with AMFI in order to become AMFI-registered mutual fund advisers.
The agents registered with AMFI provide certainty to the investors in terms of the information transferred about mutual fund schemes, market trends, and the reasoning behind their actions. AMFI advises investors to ensure that their funds are in the right hands by checking the agents’ ARN. In case, an investor wishes to invest directly, he/she should specify the ARN code of the AMC and not that of the distributor.
How to Register or Renew the New ARN
Agents, Fund houses, or intermediaries can apply for registration or renewal of their ARN using both the online or offline modes.
Online Mode of Registration & Renewal of ARN
- For the Registration or Renewal of your ARN, you must first link your Aadhaar with your registered mobile number
- You must apply for the Aadhaar details manually, in case you have not submitted them
- You must then pay the registration/renewal fee through online banking
- Once the uploaded documents are uploaded, you will receive a new ARN license instantly
It must be noted that you do not need to submit your NISM passing certificate to register or renew your ARN as it will be directly imported from the NISM portal.
Offline Mode of Registration & Renewal of ARN
- To apply for registration or renewal of ARN using the offline mode, you must visit the official AMFI portal and login using your credentials
- Your user id will work as your ARN number and the password will be sent to you via email
- After successful authentication, AMFI will have access to your personal information directly from the NISM
- Once you clear the NISM certification or CPE completion, you must pay the registration fee either online via netbanking or through debit/credit card or directly at the fund house
- Once all this is done, the registration/renewal will happen immediately
Objectives of AMFI
The Association of Mutual Funds of India (AMFI) functions with the following objectives-
- Define and maintain professional and ethical standards in the Indian mutual fund industry
- Recommend and promote effective business practices and code of conduct to be followed by the members of mutual fund and AMCs
- Interact with and represent to SEBI on all matters associated with the mutual fund industry
- Undertake nationwide investor awareness programmes in order to promote proper understanding of the concept and working of mutual funds
- Disseminate information on the mutual fund industry and undertake research and study in association with other bodies
- Regulate the conduct of distributors including disciplinary actions for violations of Code of Conduct
- Protect the interests of investors and/or unit holders
Members of AMFI
As of now, there are 44 members under the Association of Mutual Funds of India. They are as follows-
FAQs
Ques: What is the AMFI Registration Number?
Ans: AMFI Registration Number or ARN is a unique number allotted by AMFI to qualified agents, intermediaries, or distributors after it passes through the NISM certification test. This number acts as a proof that the individual or entity is reliable and can be used as a proof of transparency in the process of mutual fund investments.
Ques: What is the AMFI code?
Ans: The AMFI Code or the ACE stands for AMFI Code of Ethics which states the standards of good practices followed by the AMCs in their operations and dealings with the investors, intermediaries and the public.
