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Business News/ Money / Did You Know? Celebrities cannot endorse mutual funds
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Did You Know? Celebrities cannot endorse mutual funds

Did You Know? Celebrities cannot endorse mutual funds

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You see Sachin Tendulkar recommending insurance plans, but have you ever seen any celebrity endorsing a mutual fund (MF)? The Securities and Exchange Board of India (Sebi) has banned MFs from doing so.

Does it matter? MFs aren’t supposed to assure returns. When a celebrity endorses a product, experts say that his star value may induce investors to follow the advice without considering the risks involved.

Indian laws: Sebi keeps reviewing its advertising policy consistently. For instance, the standard warning that fund houses are mandated to flash are supposed to be displayed for five seconds and need to be read in an understandable manner and not in a haste.

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Published: 04 Feb 2010, 09:28 PM IST
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