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Ch.4 · AMFI Code of Conduct · medium

Can a mutual fund accept cash investments from investors?

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EXPLANATION

Mutual funds can accept cash investments up to ₹50,000 per investor per mutual fund per financial year. This limit is to ensure AML compliance while providing accessibility to investors without bank accounts. All amounts above this must be through banking channels.

A.Yes, up to ₹50,000 per transaction [✓ Correct]

B.Yes, without any limit

C.No, cash investments are not permitted

D.Yes, up to ₹2 lakh per year per investor

EXPLANATION

Mutual funds can accept cash investments up to ₹50,000 per investor per mutual fund per financial year. This limit is to ensure AML compliance while providing accessibility to investors without bank accounts. All amounts above this must be through banking channels.

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