Association of Mutual Funds in India (AMFI) is a trade association of mutual funds in India which was formed on 22 August 1995. It is committed to building up the Indian Mutual Fund Industry on professional, healthy and moral lines. Furthermore, it is dedicated to strengthen and preserve the standards of the industry with the end goal of securing and support the interest of mutual funds and their investors.
In 2017, the AMFI launched a media and communication campaign – ‘Mutual Funds Sahi Hai’. The objective is to promote mutual funds as a preferred investment option for future investors. Awareness of this campaign is spread through television, digital, radio, print, cinemas and outdoor hoardings in different languages.
G. Mahalingam, whole-time member, SEBI said, “it is for the first in the history of financial services that all industry participants have come together to promote the category. This campaign makes it easier for the common public to understand mutual funds and dispel any myths around them.”
Since the start of the ‘Mutual Funds Sahi Hai’ campaign, from February 2017 to March 2019, the Average Assets Under Management (AAUM) grew from Rs. 18.5 trillion to Rs. 24.6 trillion (33% increase). In the course of the most recent decade (31 March 2009 – 31 March 2019), the AUM of the Indian mutual fund industry increased from Rs. 4.17 trillion to Rs. 23.80 trillion.
On 30 January 2020, the AMFI appointed two cricketing legends of India – Sachin Tendulkar and MS Dhoni for their campaign – ‘Mutual Funds Sahi Hai’ to assist spread awareness about mutual funds, as the preferred investment option.
Nilesh Shah, Chairman, AMFI stated, “Sachin Tendulkar and MS Dhoni evoke unstinted trust and high dependability, and their longer-term orientation in their respective cricketing careers, has been akin to retail investors having equally longer-term approach towards investment. Longer-term approach be it, in cricketing career or mutual fund investments can deliver rich dividends be it for cricketers or investors, alike.”
A bank offers 6%-7% return on fixed deposit while mutual funds provide 10%-15% return which is much higher than the return of fixed deposit in a bank. Nowadays fixed deposits are becoming less attractive. Due to the less information about the alternative investment options, asset management organisations find it difficult to spread awareness about mutual funds.
NS Venkatesh, Chief Executive, AMFI said, “After three years of Mutual Funds Sahi Hai campaign, we at AMFI felt that the time is right to take the conversation with the retail investors across the country to the next level, by engaging the cricketing icons. On behalf of the Mutual Fund Industry, I thank SEBI for taking a considerate view on allowing the engagement of celebrities, at the Industry level.”
Although SEBI doesn’t permit mutual funds and asset management brands for celebrity endorsement, it has permitted to endorse celebrities at an industry level to spread awareness about investment options like mutual funds.