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Ch.4 · AMFI Code of Conduct · medium

Which of the following entities does NOT need an AMFI registration to sell mutual funds?

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EXPLANATION

Investors who invest directly through the Direct Plan of a mutual fund do not require an intermediary or AMFI registration. Direct plans allow investors to invest without going through a distributor, resulting in lower expense ratios.

A.Individual financial advisors

B.Banks acting as distributors

C.Investors buying through the Direct Plan [✓ Correct]

D.NBFC-based distributors

EXPLANATION

Investors who invest directly through the Direct Plan of a mutual fund do not require an intermediary or AMFI registration. Direct plans allow investors to invest without going through a distributor, resulting in lower expense ratios.

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