Mutual Funds companies tie-up with MMFSL for rural markets

Mumbai, May 8 (UNI) India's leading mutual fund companies like Prudential ICICI, HDFC and Kotak have tied up with Mahindra&Mahindra Financial Services (MMFSL) to distribute their products in the rural markets.

These companies will initially distribute their basic mutual fund products through MMFSL and depending upon the rural market response, move towards distributing top-of-the-line products, said a MMFSL release.

Lack of investment awareness among the rural public, along with limited distribution network, has hindered the rural penetration of mutual funds. This tie-up would foster investment awareness and encourage other mutual fund companies to offer their range of mutual fund products.

MMFSL had already started distributing products for Kotak, Prudential ICICI and HDFC. It has planned to penetrate in those areas where banks are unable to gain accessibility or have limited accessibility.

MMFSL had secured approval from Reserve Bank Of India to distribute mutual funds early this year.

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