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Mutual funds cannot bundle insurance or any other financial product with their mutual fund schemes, SEBI has informed the industry.
In a letter sent to AMFI, the market regulator observed that some of the AMCs are proposing to introduce bundled products while some existing schemes have such bundled products.
"In this regard, it is informed that no existing schemes or one which are proposed to be launched shall have bundled products," the letter stated.
Until almost a year back, many fund houses were offering 'SIP insure' plans that came with free term life insurance for SIP investors. However, most of the fund houses had to withdraw the complimentary term insurance expecting a jump in claims post covid.
One of the few fund houses with active 'SIP insure' scheme Nippon India MF announced on Tuesday that it will be stopping fresh registrations in the scheme from June 23.
