LIC Mutual Fund (LIC MF) has seen remarkable growth in its Pocket SIP product, which is aimed at first-time earners, millennials, and Gen Z investors. Within just a year of its launch, the number of Pocket SIP accounts has increased by over 300%, showing strong demand for small-ticket mutual fund investments.
Pocket SIP, launched by LIC Mutual Fund in October 2024, is a small-ticket investment plan designed for first-time and young investors. It allows people to start investing with very low amounts, making mutual funds more accessible. Investors can begin with just ₹100 per day, ₹250 per month, or ₹1,000 per quarter, with no upper limit on the investment amount.
LIC MF aims to double its monthly SIP accounts from 125 crore currently to 250 crore by March 2026. The company has set a long-term target of reaching ₹1 lakh crore in AUM.
It is also preparing to enter the specialised investment fund (SIF) segment, targeting high-net-worth individuals. The first SIF launch is expected by the fourth quarter of FY25, pending SEBI approval.
Along with the rise in Pocket SIPs, LIC MF’s total assets under management (AUM) have also grown rapidly. The AUM now stands at ₹44,000 crore, up from ₹16,500 crore in April 2023, an increase of over 160%.
In the last six months alone, the AUM expanded by ₹11,000 crore, supported by strong retail and institutional participation. Retail investors currently contribute about 60% of the total AUM.
Debt funds have shown significant traction, especially the money market fund, which has grown from just ₹20–25 crore at the start of FY25 to over ₹3,000 crore, becoming a preferred option for corporates.
Since its launch, Pocket SIP has grown rapidly, with the number of accounts rising to 1.11 lakh, compared to fewer than 350 accounts a year ago. On average, around 10,000 new accounts are being added each month.
Interestingly, about 90% of Pocket SIPs are opened through fintech platforms, which offer simple tools for comparing different mutual funds and tracking performance. This has made it especially popular among millennials and Gen Z investors, as well as people starting their careers or earning for the first time.
Tamil Nadu is a key focus area for LIC MF, as it currently ranks seventh in the country with ₹3.18 lakh crore AUM as of April 2025. The company is strengthening its presence in Chennai, Coimbatore, Madurai, and Salem, while expanding into Tier 3 towns and smaller regions.
Read more: 6 Equity Mutual Funds That Turned ₹1 Lakh into Over ₹4 Lakh in 7 Years.
LIC MF’s strong growth in Pocket SIPs and overall AUM highlights the increasing participation of young and first-time investors in mutual funds. With ambitious expansion plans, a focus on digital platforms, and a strong presence in Tamil Nadu, the fund house is well positioned to continue its growth journey and make mutual fund investing more accessible across India.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual Fund investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Sep 25, 2025, 12:02 PM IST
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