Kotak MF to offer Flipkart vouchers to financial advisors

MUMBAI: Kotak Mutual Fund, which has an asset size of around Rs 40,000 crore, is seeking to incentivise empanelled independent financial advisors (IFAs) and distributors by giving them Flipkart vouchers as it looks to reach out to untapped markets.

This is in lieu of cash payments or foreign trips that are usually doled out and is a first for the mutual fund industry, experts said. Reliance Mutual and Birla Mutual Fund have similar schemes offering ecommerce vouchers, two people familiar with the matter told ET. Those asset managers could not be immediately contacted.

“As part of the reward fulfillment, we plan to give out Flipkart gift vouchers to the programme qualifiers,“ said a Kotak Mutual Fund spokesperson confirming the matter. “The redemption window is open only after March 2015, when the fiscal year gets over.“

About 3-4% of the population invests in mutual funds in India, down from a peak of 5% in 2007-08. Companies hope the ecommerce promotion scheme may help change that. “Such reward programmes have helped distributors earn more for selling mutual funds,“ said Rupesh Bhansali, head of distribution, GEPL Capital. “Gradually, it will also help expand retail participation.“

Flipkart did not respond to an email seeking details on the matter. A spokesperson confirmed the development, but declined to give details.