The Association of Mutual Funds in India (Amfi) is preparing a report on promotional strategy for mutual fund products that include celebrity endorsement of schemes.This is to counter the growing popularity of the unit-linked plans of the insurance industry, which Amfi feels is encroaching into mutual fund territory.Amfi will seek permission from the Securities and Exchange Board of India (Sebi) for allowing mutual funds to use celebrities as brand ambassadors.Incidentally, MFs could not use celebrities as brand ambassadors as the product it is offering is subject to market risk.Amfi chairman A P Kurien told Business Standard that it has constituted a committee on advertisement strategy. The committee is likely to submit its report in January 2005."The committee will device the details of celebrity endorsement of MF products in India," Kurien said.He feels that MF industry should be allowed to use celebrities for marketing products. "Banks are doing it. Insurance industry is doing it. More on the unit link products are more of an investment vehicle than insurance. So why MF is left out ?," asked Kurien.According to Kurien, Amfi will formally appeal to Sebi once the report is finalised.Ashutosh Bishnoy, a member of the advertisement committee and UTI CMO, agrees with Amfi chairman, saying that there is a need for celebrity endorsement to popularise the MF products.According to Bishnoy, UTI MF is stepping up investment in product promotion and brand building. "There will be a sharp increase in the ad expenses this year," added him. He informed that UTI MF is planning to advertise schemes like ULIP, Child Plan, Mastershare and UTI Balanced Fund in a big way. Bishnoy indicated that if Sebi allows MF industry to use celibrity endorsement then UTI could take up the opportunity. However, the managing director of Birla Sunlife AMC, S K Mitra feels that the investment product should be sold only on merit. "You could use celebrities like Warren Buffet to sell investment products. But you should not use celebrities from sports and films for selling an investment products. There is a possibility of backlash if the product fails," he added.
