n NISM Certifications
NSM General NISM
Medium

According to the AMFI Code of Conduct for Intermediaries, what should Mutual Fund Distributors (MFDs) do regarding scheme-related documents?

Practice question from Fund Distribution & Channel Management Practices Test — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Only provide the Key Information Memorandum (KIM) to investors.

  2. Be fully conversant with the key provisions of the SID, SAI, and KIM and explain key features and risks to investors.

    Correct answer

  3. C

    Discourage investors from reading the scheme-related documents as they are too complex.

  4. D

    Provide only the abridged summary of the scheme documents

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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