AMFI intensifies action against Ponzi schemes

The Association of Mutual Funds in India (AMFI) is set to step up its efforts against Ponzi schemes and address consumers’ concerns by advertising TVCs. The televised commercials will star heavyweight names such as Sachin Tendulkar and Mithali Raj. As per AMFI’s press release, the commercials will address the three identified key fears impacting the investors’ psyche – market volatility, new-age digital trends, and unregulated schemes”

A joint study conducted by the Indian Institute of Corporate Affairs (IICA) and Investor Education and Protection Fund Authority (IEPFA) revealed that more than 10 crore Indians have been victims of fraud schemes in the past three decades. This means an average loss of Rs 15.27 Lakh per person to frauds. 

Further quotes from the AMFI press conference revealed the concept of the TVCs. A spokesperson said that via TVCs, the association’s goal is to “make small savers aware of the pitfalls of investing in dubious schemes and new-age trends” and “encourage them to shift towards formalised regulated investment avenues like mutual funds”.

The first film, starring Sachin Tendulkar, signifies the importance of staying invested in the stock market and accepting volatility in share prices. The second film advises young people to avoid investing in the digital trends of the new age and instead focus on mutual funds. The third film featuring Indian women’s cricket team captain Mithali Raj talks about how investors in today’s day and age should avoid investing in unregulated fixed deposits. 

Speaking about the idea behind the TVCs, Chairman A Balasubramanium said, “Last financial year, the mutual fund Industry added 1.09 crore new Mutual Fund investors. A significant section of retail investors voiced their concerns about continued market volatility in the light of various global geopolitical events. We wanted a voice of reason; someone people trust to address the concern and educate them that it is best to ignore short-term volatility and focus on long-term goals.

Hence, we chose Sachin Tendulkar as our brand ambassador for this.” AMFI Chief Executive NS Venkatesh further added, “We wanted to address these audiences and warn them of the pitfalls and ask them to choose a very well regulated investment option like mutual funds.”

For any clarifications/feedback on the topic, please get in touch with the writer sourabh.dubey@cleartax.in

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