New Delhi, Oct 12: Insurance-linked mutual fund schemes are fast catching the fancy of the market, with the latest addition being SBI Mutual Fund offering life cover to its investors. After the fund-insurance tie ups between life insurance corporation-JM Mutual and Kotak Mahindra MF with Om Kotak Life, State Bank of India's Mutual Fund arm has tied up with SBI Life.
SBI MF launched a new scheme, new income plus fund, where every investor between the age bracket of 18-54 years would get a maximum life cover of Rs 2.0 lakh free on their investments, officials sources said.
"Its an open-ended scheme with two options -- savings and investments. Both have growth and dividend options," the sources said, adding the scheme is open till October 22.
SBI MF, which has over 31 schemes, is the largest bank-sponsored mutual fund in the country.
The market sees synergy between mutual funds and insurance companies in the background of risk-return perspective. While investment in mutual funds for a high capital appreciation involves high risks, the insurance companies offer life cover to an otherwise risk investor.
The fund-insurance tie ups in recent times can also be seen in the context of the success of Bancassurance ties between banks and insurers.
Some of the banks like corporation bank are offering term insurance to their depositors, while almost all major banks have tied up with insurers for distributing their products. Bureau Report