Mutual Fund not to be affected by ULIP without GST

Chennai, Sept. 6 -- The scrapping of Goods and Services Tax (GST) on the Unit Linked Insurance Policy (ULIP) by the Indian government will not have any major impact on sales of mutual fund schemes, said a senior official of Bajaj Finserv Asset Management Ltd.

However, a life insurance expert had told this writer that the removal of GST on ULIP will give a big fillip to the life insurers to push the product. The Indian government has announced the GST exemption is for all individual life insurance policies including term, ULIP, and endowment plans and reinsurance services thereof.

ULIPS and mutual funds are two very distinct financial instruments and the recent changes in GST are unlikely to make a significant difference, Sorbh Gupta, Head...