1. SEBI (Your Legal Guardian)

Think of SEBI as a strict police officer or judge.

As an investor, SEBI’s job is to protect you legally. Here’s how:

• 📋 Approves Mutual Fund Schemes: Every mutual fund scheme you invest in (like SBI Bluechip Fund or Axis Long Term Equity Fund) must first be approved by SEBI.

   

• 📊 Monitors Fund Companies (AMCs): SEBI keeps a close watch on companies like HDFC AMC, ICICI Prudential, etc. If they misuse investor money or break rules, SEBI can fine them or cancel their license.

   

• 📉 Controls Risks: SEBI has rules about how much money a mutual fund can put into stocks, debt, sectors, etc., to protect you from unnecessary risks.

   

• 📢 Transparency Rules: SEBI forces mutual funds to regularly publish their NAV, returns, holdings, and expense ratios, so that you’re not kept in the dark.

   

👉 In short: SEBI gives you a legal safety net — like traffic rules for your investment journey.

🎓 2. AMFI (Your Educator & Ethics Monitor)

Think of AMFI as a friendly teacher and exam supervisor.

While SEBI regulates mutual funds and AMCs, AMFI deals with the people who guide you — distributors, agents, and advisors.

• 👨‍🏫 Educates Investors: AMFI runs campaigns like “Mutual Funds Sahi Hai” to help the public understand mutual funds in simple terms.

   

• 🧾 Certifies Distributors: If someone wants to become a mutual fund advisor, they must pass an exam and get an ARN (AMFI Registration Number) from AMFI.

   

• 🧍‍♂️ Promotes Ethical Conduct: AMFI sets a code of conduct for mutual fund sellers so they don’t misguide or mis-sell to you.

   

• 📊 Provides Data: AMFI’s website gives updated info on mutual funds, NAVs, fund rankings, and more — all in one place.

   

👉 In short: AMFI doesn’t make the rules, but helps you understand them and ensures sellers follow them honestly.