LIC Mutual Fund To Scale Down Minimum Daily SIP Limit To Rs 100

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posted on 1 month ago — updated on 1 second ago

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This decision followed the advocacy of SEBI for small SIPs to increase investor participation.

Life Insurance Corporation (LIC) Mutual Fund plans to scale down the minimum limit of SIP to Rs 100 from the current Rs 300. At an event, the company’s MD and CEO RK Jha said that the Asset Management Company (AMC) is working with the registrar KFintech Service and will file an addendum early next month to reduce the minimum daily and monthly SIP limit of Rs 100 and Rs 200. This decision followed the advocacy of SEBI for small SIPs to increase investor participation. RK Jha said that this move will help the fund house reach those sections of society which have not benefited from the stock market boom. While speaking at an event in Mumbai to launch an NFO on manufacturing funds, RK Jha further revealed that the fund house is aiming to increase its asset under management (AUM) from Rs 35,000 crore to Rs 65,000 crore by the end of this financial year. It will be further surged to Rs 1 lakh crore by the end of FY 2025-26.

As per experts, the Rs 250 SIP will be an opportunity for the wider population to participate in mutual fund investments. It will help turn mutual funds into a viable investment avenue in India. This decision is quite relevant in the wake of the latest announcements made by Sebi’s chairperson Madhabi Puri Buch, who spoke about micro-SIPs to facilitate wider participation of retail investors.

The phenomenon of micro-SIPs will be particularly relevant for the fund houses, which are looking at setting up shops in small cities and towns. It includes LIC MF, which has plans afoot to expand its reach in Dehradun, Jamshedpur, Jodhpur and Durgapur, among others. Under this, the quarterly SIP will require an investment of Rs 750 instead of Rs 3,000. Consistently investing, even with small amounts, can significantly impact your financial portfolio over time.

SIP is the easiest way to invest in mutual funds. Under SIP, the investor invests a fixed amount at regular intervals. A fixed amount is deducted from your bank account at regular intervals and invested in SIP. This strategy allows you to start investing without the need for a large sum of money.