Ch.4 · SEBI Mutual Fund Regulations · medium
Which of the following actions by a mutual fund distributor would constitute a violation of the AMFI Code of Conduct?
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EXPLANATION
Recommending frequent switching purely to earn higher commissions — known as 'churning' — is a clear violation of the AMFI Code of Conduct. Distributors must act in the best interest of investors and not recommend transactions that are detrimental to investors.
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