Fri Sep 20 13:01:22 UTC 2024: ## LIC Mutual Fund lowers SIP investment limits to boost financial inclusion

LIC Mutual Fund is set to significantly reduce the minimum investment limits for daily and monthly Systematic Investment Plans (SIPs), aiming to attract a wider range of investors and channel more commoners’ savings into equity markets. The move follows a directive from SEBI Chairperson Madhabi Puri Buch urging mutual funds to develop a ₹250 per month SIP option to increase financial inclusion.

Effective early next month, the minimum daily SIP investment limit will drop from ₹300 to ₹100, while the monthly minimum will decrease from ₹1,000 to ₹200. LIC Mutual Fund Managing Director and CEO, RK Jha, explained that the move is designed to cater to a broader segment of society that has not benefited from the recent equity market boom.

The fund house is also looking to expand its reach beyond major cities. By the end of this fiscal year, they aim to increase the number of branches from 35 to 50, focusing on untapped markets in rural areas where parent company LIC enjoys strong brand recognition.

The announcement comes as LIC Mutual Fund aims to grow its assets under management from ₹35,000 crore to ₹65,000 crore by the end of this fiscal year and further to ₹1 lakh crore by the end of FY26.

Simultaneously, LIC Mutual Fund is launching a new fund offer (NFO) for a thematic fund focused on manufacturing companies across various sectors. This NFO, which will close on October 4, reflects their belief that the manufacturing sector is poised for growth, driven by government reforms and the production-linked incentive (PLI) scheme.

While acknowledging current market valuations, LIC Mutual Fund’s Chief Investment Officer – Equity, Yogesh Patil, believes that India’s vibrant business environment and domestic growth opportunities justify the valuations, particularly in comparison to a global landscape facing geopolitical uncertainty and economic instability.

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