LIC Mutual Fund Eyes ₹1 Lakh Crore AUM Target by FY26

LIC Mutual Fund (LIC MF) has set a big target to achieve ₹1 lakh crore in Assets Under Management (AUM) by FY26, a jump from its current AUM of ₹38,000 crore. This marks a huge increase from ₹16,526 crore in FY23, showing a 67% growth in FY24 and a growth rate of 30% in the current fiscal.

Current Portfolio: Equity vs. Debt

Right now, LIC MF’s portfolio is split almost evenly between equity (47%) and debt (53%) funds. While institutional and corporate investors tend to favour debt funds, retail investors show a preference for equity. Looking ahead, LIC MF plans to shift the scales, targeting a retail and equity weightage of 65-70% as part of its growth plans.

Strategies Driving Growth

To hit its ₹1 lakh crore target, LIC MF is rolling out several initiatives:

• Tapping LIC’s Network: Leveraging the reach of Life Insurance Corporation (LIC) to expand its offices and client base.
• Building New Distribution Channels: Strengthening accessibility through platforms to attract a range of investors. 
• Technology: Adopting digital solutions to streamline operations and make investing user-friendly.

Boosting Retail Participation with SIPs

A major focus area for LIC MF is driving retail participation through its Systematic Investment Plan (SIP) offerings. To make SIPs more accessible, the fund house has slashed the minimum investment amounts, daily SIPs now start at ₹100 (down from ₹300), and monthly SIPs at ₹200 (down from ₹1,000). RK Jha, Managing Director and CEO of LIC MF Asset Management Ltd, talked about SIP’s role as a stable growth driver.

Expanding Regional Reach

LIC MF’s presence in West Bengal is notable, with the region contributing ₹3,000 crores to its assets, making it the fund’s second-largest market. The company is also expanding its presence in the Northeast.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.