LIC Mutual Fund Sets Ambitious Target to Reach ₹1 Lakh Crore AUM by FY26

LIC Mutual Fund is embarking on an ambitious journey to increase its assets under management (AUM) to ₹1 lakh crore by March 2026. This target reflects a more than three-fold growth from its current levels. As part of this strategy, the fund house plans to introduce several new funds, including a multi-asset fund and various exchange-traded funds (ETFs).

Recent Performance and Growth Plans

According to R.K. Jha, MD & CEO of LIC Mutual Fund, the fund is on track to surpass ₹60,000 crore in AUM within this financial year. This growth has been impressive, with an increase of nearly 70% from February 2023 to September 2024, significantly outpacing the industry average of around 34%.

To further enhance accessibility for investors, LIC Mutual Fund is adjusting its micro-SIP investment thresholds. The minimum monthly investment will be reduced from ₹1,000 to ₹200, while the daily SIP investment will be cut from ₹300 to ₹100. This initiative aims to attract small investors who may have previously found it challenging to invest in mutual funds.

Launch of the Manufacturing Fund

As part of its growth strategy, LIC Mutual Fund has launched the LIC MF Manufacturing Fund, which will be available for investment from September 20 to October 4. This fund is benchmarked against the Nifty India Manufacturing Index and focuses on capitalizing on opportunities within the manufacturing sector.

The fund aims to invest in companies across various industries, including metals, automobiles, pharmaceuticals, and shipbuilding. The push for import substitution, the "China+1" strategy, the availability of labor, and government support through initiatives like the Production-Linked Incentive (PLI) scheme present substantial growth opportunities in this segment.

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With its ambitious targets and innovative investment strategies, LIC Mutual Fund is poised to make a significant impact in the mutual fund landscape. By making SIPs more accessible and launching sector-specific funds, LIC is not only enhancing its market position but also catering to a broader audience of potential investors. As they move forward, LIC Mutual Fund's commitment to growth and accessibility could reshape the investment landscape for many.

[Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Investors are encouraged to conduct their own research and consult with financial professionals before making investment decisions.]