Do's and Don'ts for Investors
Essential guidelines established by SEBI and AMFI to ensure a safe, disciplined, and secure mutual fund investment journey.
Do's for Mutual Fund Investors
Best practices to maximize safety and long-term financial discipline
Deal Only with AMFI Registered Distributors
Verify the AMFI Registration Number (ARN) and Employee Unique Identification Number (EUIN) of the distributor before transacting.
Read Scheme Information Documents Carefully
Carefully study the Scheme Information Document (SID), Key Information Memorandum (KIM), and assess the Risk-o-meter before investing.
Pay Exclusively to the Mutual Fund Scheme
Make payments exclusively via digital banking, UPI, net banking, or account payee cheques made out directly to the Mutual Fund Scheme (e.g., 'HDFC Mutual Fund A/c Scheme Name').
Provide Your Own Mobile & Email Contact
Always furnish your personal mobile number and email ID in application forms to ensure you receive immediate transaction alerts directly from AMCs and RTAs.
Register a Nominee in Every Folio
Mandatorily nominate a trusted beneficiary or submit the prescribed opt-out declaration to protect your family's future access to your investments.
Monitor Consolidated Account Statements (CAS)
Reconcile your monthly CAS received from CAMS, KFintech, or NSDL/CDSL against your bank debit records and reporting tools.
Don'ts for Mutual Fund Investors
Practices to avoid to protect your capital and legal interests
Never Pay Cash or Write Cheques to Intermediaries
Never pay in cash or issue cheques in the personal name of a distributor, relationship manager, or intermediary under any circumstance.
Never Sign Blank Application Forms or Slips
Do not sign blank transaction slips, redemption requests, or mandate forms without scheme details and amounts pre-filled.
Never Share Sensitive OTPs, PINs, or Passwords
Distributors and AMCs will never ask for your confidential transaction OTP, net banking passwords, or portal credentials.
Do Not Fall for Guaranteed Return Claims
Mutual fund schemes cannot legally guarantee or assure any returns. Beware of anyone promising fixed, risk-free returns on market instruments.
Do Not Rely on Unverified Tips or Social Media
Avoid executing investments based on unregistered social media channels, unsolicited calls, or speculative rumors.
Never Bypass KYC Verification Requirements
Do not attempt to invest without completing compliant KYC documentation. Compliance safeguards your legitimate ownership.