In early October, LIC Mutual Fund announced a significant development for small investors: a Systematic Investment Plan (SIP) option starting at just ₹100. This initiative aligns with the Securities and Exchange Board of India’s (SEBI) efforts to enhance small investor participation in the market. R.K. Jha, Managing Director and CEO of LIC Mutual Fund, shared that the company is lowering the minimum SIP amount to cater to smaller investors.
SEBI Guidelines: Promoting Small SIPs
SEBI is actively encouraging smaller SIPs to make investing more accessible. The goal is to make ₹250 SIPs more feasible and practical for various funds, as currently only a handful of mutual funds offer SIPs below ₹500. With this new approach, LIC Mutual Fund is reducing the minimum daily SIP from ₹300 to ₹100, and the monthly SIP limit from ₹1,000 to ₹200.
Implementation Date: October 7
R.K. Jha announced that this new scheme will take effect from October 7. He made this announcement during a media briefing following the launch of the new LIC MF Manufacturing Fund, an open-ended equity scheme aimed at bolstering the Indian manufacturing sector. Jha noted that the sector stands to benefit significantly in the long term from government support and the global “China Plus One” strategy.
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Asset Target: Aiming for ₹1 Lakh Crore AUM by 2026
LIC Mutual Fund has set an ambitious goal to grow its assets under management (AUM) from ₹35,000 crore to ₹1 lakh crore by FY 2026. To achieve this, the fund house is expanding its equity team and enhancing its digital presence in B-30 cities (Tier-2 and Tier-3). The company also plans to open 50 new branches in locations like Dehradun, Jamshedpur, Jodhpur, and Durgapur.
Digital Transformation and New Fund Offerings
In addition, LIC Mutual Fund is gearing up to launch a new mobile app for distributors within the next month. This follows the successful introduction of an app for investors in November last year, which streamlined the investment process. The company is also planning to roll out two new funds: a Multi-Asset Fund and an Exchange Traded Fund (ETF).
Conclusion
These initiatives by LIC Mutual Fund are designed to encourage small investors to participate in mutual funds. With the option to start SIPs with small amounts, investors will have a better opportunity to reap long-term benefits. Both SEBI’s new initiatives and LIC Mutual Fund’s plans are expected to enhance investor confidence in mutual funds.
Disclaimer: Investments in the stock market come with risks. Please conduct thorough research or consult a financial advisor before making investment decisions. The information in this article is intended to educate and inform investors and the general public.