DSP Merrill enters UP through life insurance

Fund manager, DSP Merrill Lynch has made its foray into Uttar Pradesh with the launch of DSP Merrill Lynch SIP, which offers life insurance up to 240 per cent of the monthly investment. The DSP had so far been managing its operation through private and public sector unit banks and now plans to open its office in UP soon.

Pankaj Sharma, senior vice president and head of risk management and new product development, said UP had contributed Rs 27 crore in various mutual fund schemes.

He said the state had immense potential which had encouraged them to expand their operations in the northern state. He said the northern region as a whole had vast potential. DSP had recently opened an office in Chandigarh.

Delhi investors had contributed over Rs 1,200 crore in various investment plans of the Merrill Lynch, during last fiscal, he added.

On the new product DSP Merrill Lynch Super SIP, he said this is one-of-a-kind facility where investments made through a monthly systemic investment plan also provide the investor with a life insurance cover.

He said there were two broad options. One was with variable cover available for tenures of six, 11 and 16 years and other was with a fixed cover available for tenure of 21 years.

"The idea is to facilitate investors to save regularly with a financial goal in mind and to provide life insurance cover'' said Sharma. He added the product encouraged investors to invest systematically in equities and thus benefited them from the twin concept of rupee cost averaging and the power of compounding''.