LIC Mutual Fund plans to launch smaller ticket-size systematic investment plans (SIPs) of Rs 100 by the first week of October, said RK Jha, managing director and chief executive officer.
The decision comes at a time when the Securities and Exchange Board of India (Sebi) has been advocating lower-size SIPs to allow more participation from investors. In its initiative to make it more accessible, the market regulator has been working on measures to make Rs 250 SIPs more cost-effective and viable for fund houses.
At present, there are a few fund houses that offer SIPs below Rs 500.
LIC Mutual Fund plans to bring down the minimum daily SIP amount to Rs 100 from the current limit of Rs 300, while the same for monthly SIPs will be brought down to Rs 200 from Rs 1,000 at present.
“We will bring the addendum for lowering the SIP amounts on October 7,” said Jha.
Jha was speaking on the sidelines of the launch of their new fund offering, LIC MF Manufacturing Fund—an open-ended equity scheme focusing on the manufacturing theme. The fund house believes that the push from the government and the global shift in the supply chain to China+1 are in favour of the sector for the long term.
The fund house is aiming to take its assets under management to Rs 1 trillion by the financial year 2026—from the current Rs 35,000 crore.
“We have increased our team strength in the equities segment and are focusing on digital presence along with new branches in B30 cities to augment the AUM. We plan to take the total count of branches to 50, with over ten new branches in cities such as Dehradun, Jamshedpur, Jodhpur, Durgapur, among others. The fund house will also launch a new app for distributors in a month,” added Jha.
The fund house had launched its investor app last year in November.
The fund house has also lined up two new fund launches for the next two quarters, including a multi-asset fund and exchange-traded funds.
First Published: Sep 20 2024 | 5:09 PM IST
