LIC Mutual Funds aims to reach Rs 1 lakh crore in assets under management by the end of the current fiscal year, according to its MD and CEO, Ravi Kumar Jha.. He stated that the company's asset under management (AUM) has increased by 30%, from Rs 33000 crore in FY25 to more than Rs 44,000 crore currently. It was Rs 16526 crore in FY23.
Key Highlights
- LIC MF aims to grow its AUM from ~₹33,000 crore to ₹1 lakh crore by fiscal year end.
- It achieved 30% growth in AUM in FY25 and launched “Pocket SIP” targeting low-income investors.
Jha stated, "In April 2023, the monthly SIP was Rs 45 crore to 46 crore, and we have grown to Rs 125 crore as of today. In October 2024, the company also launched 'Pocket SIP', which collects Rs 100 per day from low-income individuals, Rs 200 per month, and Rs 1,000 per quarter. As of September 15, the total number of Pocket SIPs stood at 1.11 lakh. We also intend to increase AUM to more than one lakh crore by the end of the current fiscal year."
He added that the majority of SIPs are from fintech platforms, which are typically used by younger generations such as GenZs and millennials. The total AUM of Pocket SIP is nearly Rs 4,000 crore, and the company aims to reach Rs 250 crore in monthly SIP by the end of the year, according to the LIC MF MD.
The industry has grown at a CAGR of around 16% to 17% over the last two to three years."By 2030, the AUM is expected to have increased to Rs 100 lakh crore from Rs 75 lakh crore.
This is the tip of the iceberg. Our AUM ratio to GDP ranges between 17% and 18%, whereas developed countries such as the United States have an AUM ratio of around 130%. So we have a tremendous opportunity," he added.
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He also stated that LIC MF intends to launch Specialised Investment Funds (SIFs) to attract HNI clients who invest between Rs 10 lakh and Rs 50 lakh.
Speaking of AUM bifurcation, he stated that the company's equity AUM is around Rs 19,000 crore and its debt AUM is Rs 20000 crore. Corporate investments accumulate to 38%-40%, whereas retail is around 60%. He also stated that the company's AUM in money market funds had increased to Rs 3100 crore from Rs 20-25 crore.
