Guide · Compliance
What a mutual fund distributor can and can't post on social media
By Shreedhanam Research · Updated
Short answer
A mutual fund distributor's public posts should educate, not promote. AMFI's guidance says they should not name a scheme or fund house without the fund house's written approval, show past performance of a scheme, promise or imply a return, call the distributor an adviser or planner, or offer anything free as an inducement. Posts about mutual funds carry SEBI's standard risk line.
Eight things that make a post non-compliant
These are the checks Shreedhanam runs on every post before it can be shared, in English, Hindi, Gujarati and Marathi. Each one is drawn from AMFI's FAQ on the role of mutual fund distributors in advertisements, or from SEBI's guidance.
| # | A public post must not… | Source |
|---|---|---|
| 1 | Name a specific mutual fund scheme | AMFI FAQ for MFDs, Q9 and Q10 |
| 2 | Name a fund house, or use its logo, without its written approval | AMFI FAQ for MFDs, Q13 |
| 3 | Identify a fund by an obvious paraphrase ("the big flexi cap fund from …") | Same basis as 1 and 2 |
| 4 | Use a title reserved for SEBI-registered advisers, such as adviser, financial planner, wealth manager or consultant | AMFI FAQ for MFDs, Q2 and Q8 |
| 5 | Promise or imply a guaranteed, assured or risk-free return | SEBI draft circular on advertisements, December 2025 |
| 6 | Offer an inducement: free advice, a free portfolio review, cashback or a gift | AMFI FAQ for MFDs, Q8 and Q12 |
| 7 | Suggest SEBI approves or endorses the distributor or a product | SEBI draft circular on advertisements, December 2025 |
| 8 | Tell people to buy or sell a particular security, or give a price target | AMFI FAQ for MFDs, Q2 and Q3 |
What a distributor can post
- Explainers on how mutual funds work: SIPs, NAV, expense ratios, categories, taxation, nominations, KYC.
- Market and economy updates that don't point to a particular scheme.
- Category-level information, such as what a large cap or flexi cap fund must hold.
- Reminders about goals, emergency funds, insurance and staying invested through falls, without promising an outcome.
- The distributor's own name, ARN and the words "AMFI Registered Mutual Fund Distributor".
The SEBI risk line
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Use the official English wording. There is no official Hindi, Gujarati or Marathi version, so posts in those languages should still carry the English line rather than a translation that may not match it.
Public posts vs messages to your own clients
The rules above are strictest for public content: social media, a website, a WhatsApp status or a broadcast list. A report or message to a client about the schemes that client already holds can name those schemes, because it is service to an existing investor, not promotion. It should still carry the risk line, the date of every figure, and no promise of returns.
Questions
Can a mutual fund distributor name a fund on Instagram or WhatsApp?
Not in public posts. AMFI's FAQ for distributors says social media content should be educational and should not name or promote a specific scheme, and a fund house's name or logo needs its written approval.
Can a mutual fund distributor call themselves a financial adviser?
No. Titles such as adviser, financial planner, wealth manager or consultant are reserved for SEBI-registered investment advisers. A distributor may say "AMFI Registered Mutual Fund Distributor" with their ARN.
Can an MFD offer a free portfolio review?
AMFI treats offers such as free advice, free portfolio reviews, cashback or gifts as inducements, which distributors should not use to attract investors.
Is the mutual fund risk line needed in Hindi posts?
Yes. Use SEBI's English wording, "Mutual Fund investments are subject to market risks, read all scheme related documents carefully.", because there is no official Hindi, Gujarati or Marathi version.
Sources
- AMFI, FAQs on the role of mutual fund distributors in advertisements
- SEBI draft circular on advertisement code for mutual funds, December 2025 (draft)
- SEBI (Mutual Funds) Regulations, 1996, Sixth Schedule (advertisement code)
For mutual fund distributors. This page is information, not investment advice or a recommendation to buy, sell or switch any fund.