The mutual fund industry has approached market regulator Sebi to allow entry into pension product market, in a bid to garner long-term funds.
At present, pension products are offered by only insurance firms and Pension Fund Regulatory and Development Authority (PFRDA).
"AMFI has made a presentation to Sebi for allowing asset management companies to raise funds through pension products," sources said.
Industry body Association of Mutual Funds in India (AMFI) is of the view that this would help in penetration of pension product as well as raising stable assets for the industry.
"The MF industry wants to launch pension products with annuity features to provide the benefit of retirement savings to customers," sources added.
In its presentation to Sebi, AMFI has said that since asset management companies already have experience in managing investor money, they should be considered for entry into the pension fund market.
The Rs 7.43 lakh crore mutual fund industry, which has been riddled with sagging fund inflow after entry load was scrapped 2009, is lobbying hard for the entry into pension product market to boost the percentage of stable assets in the total corpus.