Allow MFs to offer risk cover: AMFI

The mutual fund industry has proposed that the market regulator allow them to offer insurance cover to investors along with their regular schemes.

Association of Mutual Funds of India Chairman A P Kurian said mutual funds should be allowed to sell insurance cover by tying up with insurance companies. According to the proposal, the insurance premium under these schemes would be collected separately.

When asked whether the proposal is meant to counter the hugely-popular unit-linked insurance products (Ulips), which is currently being offered by insurance companies, he said “the idea is to provide additional facility to investors”.

If allowed, MFs may come up with different insurance covers tagged with their products. A section of the insurance industry, however, is reportedly against the AMFI proposal.