LIC Mutual Fund plans to reduce the minimum daily SIP investment limit to ₹100 from ₹300 for widening investor base and channel more commoners’ savings into equity markets.
The fund house also plans to cut the monthly minimum SIP investment cap to ₹200 from ₹1,000.
The move comes on the heels of SEBI Chairperson Madhabi Puri Buch directing mutual funds to develop a new systematic investment plan of ₹250 per month to make financial inclusion more accessible to a wider range of people.
RK Jha, Managing Director and CEO, LIC Mutual Fund said the fund house is working with registrar KFintech Service and will file an addendum early next month to reduce minimum daily and monthly SIP limit of ₹100 and ₹200 to cater a wider section of the society which have not benefited from the equity market boom.
The fund house is targeting to grow its asset under management from ₹35,000 crore to ₹65,000 crore by end of this fiscal and further to ₹1 lakh crore by end of FY26.
LIC MF plans to increase its branches from 35 to 50 by end of this fiscal largely in the beyond top-30 cities with an intention to tap unexplored market in rural regions where the parent LIC has a strong brand value, he said at an event to launch new fund offer (NFO) on manufacturing fund.
The NFO of thematic fund, which will invest in companies into manufacturing across sectors, will close subscription on October 4.
Yogesh Patil, Chief Investment Officer – Equity, LIC Mutual Fund said over the past two decades, India’s gross value added from the manufacturing sector has grown at a slower pace, with economic growth largely driven by consumption and services.
However, he said this is expected to change, as government reforms aim to position India’s manufacturing as a key engine of economic growth with production-linked incentive (PLI) scheme.
On high market valuations, he said India is kind of oasis in the global arena which is riddled by geopolitical crisis, unstable economy, fluctuating currency and political unrest.
While there are forth in select sector, he said overall the market valuations are justified given the vibrant business environment and domestic growth opportunities.
