India Post to rope in more AMCs for selling mutual funds

Written by Prachi Karnik Pradhan | Mumbai, Jun 12 | Updated: Jun 14 2008, 04:05am hrs
The department of post (DoP) will soon rope in more asset management companies (AMCs) for selling mutual fund schemes. Besides, DoP is also making efforts to tie up more private insurance players for selling insurance products.

A senior department source told FE that UTI MF, Principal PNB AMC, Prudential ICICI and SBI Mutual Fund are among the fund houses who have already inked such arrangements with the department way back in 2001. With the overwhelming success that has resulted in a significant increase in the fee income earned by the department, it proposes to further extend its services to other AMCs, the official noted.

Another official requesting anonymity informed that the department has evolved as one of the important distribution channels for the AMCs and has managed to collect more than Rs 600 crore towards investments in mutual funds during 2007-08.

This has earned the department earn fee income of over Rs 16 crore only with the sale of mutual funds. The earnings have more than doubled, the official said as the department had earned Rs 5 crore during 2006-07 fiscal.

The post offices earn commission through a gamut of services it has initiated in the recent years including sale of mutual funds, insurance schemes and other financial products including the international money transfer services, the official said.

The department has earned over Rs 56 crore through international money transfer service through its widespread network of post offices, he added.