Ch.4 · SEBI Mutual Fund Regulations · medium
Which of the following is a SEBI regulation specifically designed to prevent mis-selling of mutual funds to investors?
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EXPLANATION
SEBI and AMFI mandate that distributors must conduct risk profiling and suitability assessment before recommending any scheme. This ensures that the scheme recommended matches the investor's risk appetite, financial goals, and investment horizon, thereby preventing mis-selling.
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