The Hindu Business Line : UTI schemes to be sold at post offices

THE Department of Posts (DoP) and UTI Mutual Fund on Tuesday announced a strategic tie-up for distribution of the latter's mutual fund schemes through select post offices.

Initially, UTI MF will be focusing on retailing five schemes through 50 post offices across the country, which is expected to cross 1,000 in the next few years.

The schemes on offer are the UTI Children's Career Plan (which provides for higher education through scholarships), UTI Variable Investment Scheme, UTI Mahila Unit Scheme aimed at providing an investment vehicle for women, UTI Mastershare Unit Scheme, and UTI Linked Insurance Plan, the fund's largest scheme.

A MoU was signed between Mr Vijay Bhushan, Secretary, DoP, and Mr M. Damodaran, Chairman and Managing Director, UTI, in the presence of the Union Minister of Finance, Mr P. Chidambaram, and the Minister of Communication and IT, Mr Dayanidhi Maran.

UTI MF has conducted a five-day training programme for postal employees to help them achieve the status of `certified advisors' for distribution of mutual fund products.

Speaking on the occasion, Mr Maran said: "We are witnessing the transformation of the DoP into a modern financial services institution in addition to it being a core communication provider."

He added: "This is in line with international trends where postal departments are leveraging their traditional positions to provide a wide range of services in logistics and financial services areas."

The DoP already distributes mutual funds for Prudential ICICI, SBI Mutual Fund and Principal Mutual Fund.

While the post office will not bear the risks associated with the mutual fund market, an effort has been made to provide different kinds of services dealing with equity as well as debt funds, Mr Maran said.

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