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Since 1st March, 1999
 
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MF plan offers accident cover

Calcutta, Jan. 13: Peerless Fund Management Company, the investment manager of Peerless Mutual Fund, will offer personal accident insurance with one of its new schemes.

Last week, the city-based fund house had filed a draft prospectus for four debt schemes — Peerless Liquid Fund, Peerless MF Savings Fund, Peerless Short-Term Fund and Peerless Ultra Short Term Fund.

According to the information document, Peerless MF Savings Fund will provide accident insurance as an additional benefit. The premium for the risk cover may or may not be borne by the asset management company (AMC).

In case the AMC decides not to pay the premium, an investor will have the choice of paying his/her own premium or may buy the scheme without the accident cover.

Since it is a group insurance, the premium amount will be small. The annual premium per investor is only Rs 8.66 for an accident cover of up to Rs 25,000 and Rs 34.65 for a cover of Rs 75,000 or more.

Peerless Fund Management Company has tied up with city-based National Insurance Company for the cover.

A couple of years ago, mutual fund houses were offering a group life cover to compete with unit-linked insurance plans sold by life insurance companies.

After objections from the insurers, fund houses were barred from offering the life cover. To avoid controversy, Peerless Mutual Fund has decided to tie up with a non-life insurance company.

Industry experts say the move will attract investors. Selling funds have become difficult after the ban on entry load, with distributors and agents showing little interest in selling schemes.

Peerless MF Savings Fund, an open-ended debt fund that aims to invest a minimum of 80 per cent in debt securities and a maximum of 20 per cent in equities, will be managed by Ganti N. Murthy (for the debt part). Murthy was earlier a senior fund manager with SBI Mutual Fund. Kaushik Dani, previously heading the portfolio management services at K.R. Choksey Shares & Securities, will look after the equity part.

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