LIC Mutual Funds aims to achieve to Rs 1 lakh crore AUM by the end of the current financial year, said its MD & CEO Ravi Kumar Jha on Wednesday. He said that the company's asset under management (AUM) has grown by 30% from Rs 33000 crore in FY25 to over Rs 44,000 crore till now. It was Rs 16526 crore as of FY23.
Jha said, “In April 2023, the monthly SIP was Rs 45 crore to Rs 46 crore and we have grown to Rs 125 crore as on date. In October 2024, the company also launched ‘Pocket SIP’ whereby we collect Rs 100 per day from low-income segment people, Rs 200 per month and Rs 1,000 per quarter. As of September 15, the total number of Pocket SIP stands at 1.11 lakh. We also plan to increase AUM to over 1 lakh crore by the end of current financial year.” He added that most of the SIPs are from fintech platform which is normally by younger generation like GenZs and millennials. The total AUM size of Pocket SIP is nearly Rs 4,000 crore and the company is working towards reaching monthly SIP of Rs 250 crore by the year-end, the LIC MF MD claimed.
Industry growth has been around 16% to 17% CAGR in the last two-three years. “By 2030, the AUM is expected to grow to Rs 100 lakh crore from Rs 75 lakh crore.
This is just tip of the iceberg. Our AUM ratio to GDP is 17% to 18% whereas in developed countries like US, the AUM ratio to GDP is around 130%. So we have immense opportunity,” he added.
He also added that LIC MF plans to roll out Specialised Investment Funds (SIFs) to tap HNI clients who invest between Rs 10 lakh and Rs 50 lakh.
Talking about bifurcation in AUMs, he said the company’s AUM in equity is around Rs 19,000 crore and debt is Rs 20000 crore. Investments from corporates
accumulate to 38%-40% while retail is around 60%. He also said that the company AUM in money market funds has grown to Rs 3100 crore from Rs 20-25 crore.