LIC Mutual Fund (LIC MF), a leading player in India’s financial ecosystem, is setting its sights on a significant milestone. The fund house may consider an Initial Public Offering (IPO) once its Assets Under Management (AUM) reaches ₹1 trillion, a goal it plans to achieve by the end of the financial year 2025-26, Managing Director and CEO RK Jha announced.
Currently managing an AUM of ₹38,000 crore, LIC MF has witnessed remarkable growth. Its AUM has surged from ₹16,526 crore in FY’23, marking a 67% growth in FY’24 and maintaining a robust 30% growth rate.
Shift in equity weightage
Jha highlighted that LIC MF’s current equity contribution stands at 47%, while debt accounts for 53%. Institutional and corporate investors predominantly favor debt funds, whereas retail participation leans toward equity. The fund house aims to increase retail equity weightage to 65-70% as it works towards its ₹1 trillion target.
“We want retail or equity weightage to grow to 65-70 per cent when we hit ₹1 lakh crore,” said Jha, acknowledging the ambitious nature of the target with 15 months remaining.
Expanding reach through strategic initiatives
To accelerate growth, LIC MF is leveraging its vast network under Life Insurance Corporation (LIC). It is expanding its physical presence, building robust distribution channels across diverse platforms, and incorporating advanced technological solutions to streamline processes.
To encourage broader retail participation, the fund house has reduced the minimum SIP (Systematic Investment Plan) amount. “Reducing the daily minimum SIP amount to ₹100 from ₹300 and the monthly minimum to ₹200 from ₹1,000 will facilitate greater participation,” Jha stated.
Strong performance in key regions
LIC MF has established a solid footprint in West Bengal, managing ₹3,000 crore in assets as of November. This makes the state second in its list of top investors. The company is also making strides in the Northeast, focusing on regional expansion.
Future prospects
LIC MF’s bold initiatives and consistent growth trajectory highlight its potential to achieve the ₹1 trillion AUM goal. With a focus on retail engagement, innovative solutions, and regional outreach, the fund house aims to position itself for significant growth, reflecting positively on India’s financial landscape.
