The incident occurred during the funeral ceremony of Fayaz Ahmed alias Setha, a resident of Qaimoh area of Kulgam, who was killed in retaliation yesterday after militants had fired upon a police party which had gone to Mir Bazaar area to investigate a road accident.
Ahmed had been been on the run since August 2015 after his name cropped up in the Udhampur terror strike case.
Three civilians and a cop were also killed in the attack yesterday.
The militants raised some slogans and then fled, the officials said.
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The incident comes just a couple of days after the security forces carried out a major combing operation in the neighbouring Shopian district to flush out militants.
There have been several instances of militants appearing at the funerals of slain associates in recent times in what appears to have taken the shape of a disturbing trend.