Ch.6 · Distributor Commission Structure · medium
What is 'negative selling' in mutual fund distribution and why is it prohibited?
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EXPLANATION
Negative selling involves disparaging other AMCs' schemes, creating unfounded fear about competitor products, or using scare tactics to influence investor decisions. AMFI's Code of Conduct prohibits negative selling as it is unethical, misleading, and not in the investor's best interest. Recommendations should be based on positive merits, not fear.
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