Owing to greater investor awareness, mutual funds will continue to sell even though intermediaries might try to push insurance products, says ICICI Prudential Asset Management Company's deputy managing director Nilesh Shah, in an interview with Suneeti Ahuja.

What is your take on the latest Sebi ruling on no entry load?

So far, Sebi's communication has only mentioned that there will be no entry load. The fine print is not out yet. We will wait for Sebi to release the details before commenting.

In the absence of a fixed commission, do you fear that agents might push insurance products for their higher commissions?

Life insurance and mutual funds serve different investor needs. While mutual funds fulfil the investment need, life insurance acts as a safety net. Unit-linked insurance plans (Ulips) do have some similarity with mutual funds. But the way they have been sold is very different compared with mutual funds. And while agents might be driven by higher commissions, investors are fully aware of what needs are met by insurance and by investment products.

What is the significance of Sebi allowing anchor investors in IPOs?

Whenever an issue gets over-subscribed, it becomes difficult to build a large position. Recognition as anchor investors will allow us to build large positions by getting firm allotment. The IPO too will get the stamp of approval from institutional investors with the latter willing to commit money for the long term.

What are your expectations from this year’s Budget?

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