Investor Awareness: Protecting Your Mutual Fund Investments from Fraud

Mutual fund investments are subject to market risks. No scheme can guarantee returns, so any offer that does is a warning sign.

Oct 27, 2026

Vigilance Awareness Week 2026 is observed from October 26 to November 1, with the Central Vigilance Commission’s theme "सत्यनिष्ठा से समृद्धि" (Probity for Prosperity). In line with SEBI’s direction to AMFI and AMCs, investors are encouraged to take the CVC e-pledge at https://pledge.mygov.in/cvc/.

Common Frauds and Safeguards

Type of fraud	How it works	What you should do
Assured-return offers	Claims of fixed or “guaranteed” monthly returns from a mutual fund	Treat as false. Mutual fund returns are market-linked.
Unregistered advisors	A person asks you to pay into a personal account	Check SEBI registration. Pay only to the AMC or via a registered intermediary.
Fake apps and websites	Look-alike names, links sent by SMS or messaging apps	Use the official AMC website or app. Type the address yourself.
OTP and KYC fraud	A caller says your account will be blocked unless you share details	Never share OTPs, PINs or passwords.
Tip groups	Messaging groups promoting “special funds” or urgent opportunities	Ignore unsolicited tips and do not forward them.

Verify Before You Invest

Before you commit to any investment, make sure you confirm if:

● The AMC or intermediary registered with SEBI?

● The scheme offered on the AMC’s official website or app?

● The payment going to the scheme or AMC, not an individual?

● Is anyone pressuring you to decide quickly?

If the answer to any of these is doubtful, do not proceed.

Good Investing Habits

● Use trusted channels. Invest directly with the AMC or through a SEBI-registered intermediary.

● Keep contact details updated. Your mobile number and email with the AMC ensure transaction alerts reach you.

● Review your statements. Check your Consolidated Account Statement (CAS) regularly. Investigate any transaction you do not recognise.

● Do your KYC only through registered entities. Never send identity documents over informal channels.

● Do not rely on screenshots. Profit screenshots and testimonials are easy to fake.

If You Suspect Any Fraudulent Activity

1. Inform your AMC or intermediary immediately.

2. For online financial fraud, call 1930 or report at cybercrime.gov.in.

3. File a complaint on SEBI’s SCORES portal.

Report quickly, because delays reduce the chances of recovery.

The Bottomline

Mutual fund investments are subject to market risks. No scheme can guarantee returns, so any offer that does is a warning sign.

Verify before you invest. Question any promise of assured returns. Stay informed, and this week, take the CVC pledge at https://pledge.mygov.in/cvc/ to affirm your commitment to integrity.

SEBI Registration No. MF/020/94/8

An Investor education and Awareness initiative of Aditya Birla Sun Life Mutual Fund
All investors have to go through a one-time KYC (Know Your Customer) process. Investors to invest only with SEBI registered Mutual Funds. For further information on KYC, list of SEBI registered Mutual Funds and redressal of complaints including details about SEBI SCORES portal, visit link: https://mutualfund.adityabirlacapital.com/Investor-Education/education/kyc-and-redressal for further details.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully

My Financial Goal #1