LIC Mutual Fund (LIC MF) has set an ambitious target to reach Rs.1 trillion in assets under management (AUM) by the end of FY2026. Currently, the fund house has approximately Rs.35,000 crore in AUM and aims to grow significantly over the next few years through various strategic initiatives.
With a market capitalization of Rs.6.5 lakh crore, the share price of LIC Limited reached an intra-day high of Rs.683 per share on Monday, rising 2.3 percent from its previous close before closing at Rs.680.9 per share.
Development Initiatives
LIC Mutual Fund aims to expand its physical presence by increasing the number of branches from 35 to at least 50 by March 2025. This move is considered essential for improving customer perception and trust.
LIC Mutual Fund intends to launch smaller ticket-size systematic investment plans (SIPs) beginning at Rs.100 in the first week of October, according to RK Jha, Managing Director and Chief Executive Officer. This initiative is in line with the Securities and Exchange Board of India’s (Sebi) advocacy for lower-size SIPs to promote greater investor participation.
To enhance accessibility, the market regulator is implementing measures to make Rs.250 SIPs more cost-effective and viable for fund houses. Currently, only a few fund houses offer SIPs below Rs.500.
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The Mutual Fund plans to reduce the minimum daily SIP amount to Rs.100 from the current Rs.300. For monthly SIPs, the minimum will be lowered to Rs.200 from Rs.1,000. The fund house has plans for two new fund launches over the next two quarters, which will include a multi-asset fund and exchange-traded funds.
Jha made these remarks at the launch of the new fund offering (NFO), LIC MF Manufacturing Fund, an open-ended equity scheme centered on the manufacturing theme.
Government Support
The fund house believes that government support and the global shift in the supply chain to a China+1 model favor long-term growth in the sector.
Government initiatives such as Make in India and the Production Linked Incentive (PLI) Scheme can support sectors in which LIC Mutual Fund invests, while efforts toward financial inclusion can broaden its investor base.
AUM Target
The fund house is aiming to take its assets under management (AUM) to Rs.1 trillion by FY26 from the current Rs.35,000 crore.
“We have increased our team strength in the equities segment and are focusing on digital presence along with new branches in B30 cities to raise the AUM. We plan to take the total
count of branches to 50 with over 10 new in cities such as Dehradun, Jamshedpur, Jodhpur, and Durgapur, among others. The fund house will also launch a new app for distributors in a month,” added Jha. It launched its investor app in November last year.
Financial Performance
In its recent financial updates, LIC India Ltd reported revenue of Rs.2,12,083 crore in Q1FY25, marking a 12 percent growth from Rs.1,90,163 crore in Q1FY24. However, the company’s net profit fell to Rs.10,527 crore from Rs.9,634 crore in the same period, reflecting a 10 percent increase.
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Written by – Siddesh S Raskar
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