New Delhi: In a move that would bring end the undue advantage of Mutual Fund distributors over investors, SEBI has said that distributors will have to reveal commission earned on various Mutual Fund schemes.
The market regulator says that investors have the right to know why a particular scheme is sold to them.
Currently, many of insurance and mutual distributors earn fat commissions ranging between two to six per cent on selling schemes to the investors.
Mutual Fund industry on Tuesday proposed that the market regulator SEBI allow Mutual Funds to offer insurance cover to investors along with their regular schemes.
Association of Mutual Funds of India chairman A P Kurian said Mutual Funds may be allowed to sell insurance cover by tying up with insurance companies. As per the proposal, the insurance premium under these schemes would be collected separately.
When asked whether the proposal is meant to counter Ulips-unit linked insurance products-being offered by insurance companies, which have become a big hit with investors, he said "the idea is to provide additional facility to investors."
With inputs from PTI
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