Ch.6 · ARN and EUIN Rules · medium
What is 'churning' from an AMFI Code of Conduct perspective?
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EXPLANATION
Churning is explicitly prohibited under the AMFI Code of Conduct. It involves recommending frequent switches between schemes primarily to earn commissions (historically upfront, now through trail resets) rather than for genuine investment merit. Churning erodes investor returns through exit loads, taxes, and transaction costs.
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