Ch.5 · NFO Process and Rules · medium
What is the significance of the phrase 'SEBI does not guarantee the scheme's performance' in scheme documents?
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EXPLANATION
SEBI regulates the structure, disclosures, and operations of mutual funds but does not evaluate or guarantee the investment merit of any scheme. The fact that SEBI has reviewed a scheme's SID does not imply SEBI endorses it. Returns depend entirely on market performance and fund manager decisions, not regulatory oversight.
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