Advisors urge caution as state-owned banks push group's MF products

They say investors need to be wary if a bank-backed fund house has a limited product basket

Banking customers, especially those belonging to state-owned banks, are most likely to be urged by the the lenders' sales teams to invest in mutual fund (MF) products of the bank-sponsored fund house.

According to data collated by Prime Database, PSU banks such as Canara Bank, Union Bank, State Bank of India, Bank of Baroda and IDBI Bank (classified recently as private bank), earned 70-100 per cent of their distribution income selling MF products of their mutual fund subsidiaries.

MF advisors say that the practice may not be always in the best interests of the investors. "Customers looking to buy MF