LIC Mutual Fund may consider bringing an IPO after its assets under management (AUM) reach the level of Rs 1 lakh crore. An official gave this information on Friday. The company has set a target of Rs 1 lakh crore AUM by the financial year 2025-26.
LIC Mutual Fund may consider bringing an IPO after its assets under management (AUM) reach the level of Rs 1 lakh crore. An official gave this information on Friday. The company has set a target of having an AUM of Rs 1 lakh crore by the financial year 2025-26. At present, the AUM of LIC MF is around Rs 38 thousand crore, which was Rs 16,526 crore in the financial year 2022-23.
Equity contribution in all funds is 47 per cent
LIC Mutual Fund (MF) Asset Management Limited Managing Director (MD) and Chief Executive Officer (CEO) RK Jha told PTI, “We have increased by 67 per cent in FY 2023-24 and our current growth rate is 30 per cent.” He said that the current equity contribution in all funds is 47 per cent, while the remaining 53 per cent is from bonds.
Investors put money mostly in bonds
Jha said that institutional and corporate investors have put their money mostly in bonds, while retail participation is inclined towards equity. He said, ‘We want the retail or equity weightage to increase to 65-70 percent when we reach Rs 1 lakh crore.’
LIC MF has taken many initiatives
Jha said that LIC MF has taken many initiatives to achieve this goal. These include expanding its offices using the vast network of Life Insurance Corporation (LIC), setting up distribution channels on various platforms and implementing technology solutions. Apart from this, LIC MF has reduced the minimum Systematic Investment Plan (SIP) amount to encourage wider participation of retail investors.
