LIC Mutual Fund May Explore IPO Once AUM Reaches Rs 1 Lakh Crore, Says CEO

LIC Mutual Fund may contemplate an initial public offering (IPO) after its asset under management (AUM) exceeds Rs 1 lakh crore, which it hopes to achieve by FY26, LIC MF chief executive officer RK Jha has said. LIC Mutual Fund’s AUM is currently over Rs 38,000 crore, up significantly from Rs 16,526 crore in FY23. 
 

“We grew by 67 per cent in FY24, and our current growth rate is 30 per cent,” PTI quoted LIC MF Asset Management MD and CEO RK Jha as saying. He said that the current equity contribution across all funds is 47 per cent, with debt accounting for the rest. 
 

Want Retail Participation To Grow 

Jha said institutional and corporate investors have mostly invested in debt funds, but consumer participation is biased towards equities. 

“We want retail or equity weightage to grow to 65-70 per cent when we hit Rs 1 lakh crore, he said, acknowledging the ambitious nature of the target, adding that 15 months remain for achieving it.  

Jha said LIC MF has also implemented a number of steps to attain this goal. These include expanding its offices by using the huge network of Life Insurance Corporation (LIC), building distribution channels across several platforms, and implementing technology solutions. 
 

Additionally, LIC MF has decreased the minimum systematic investment plan (SIP) amount to promote greater participation from regular investors, he added. 
 

“SIP is a powerful and consistent growth engine for us, and we expect it will continue to gain traction. Reducing the daily minimum SIP amount to Rs 100 from Rs 300 and the monthly minimum to Rs 200 from Rs 1,000 will encourage more participation,” he added. 

Jha said that LIC MF is well-positioned in West Bengal and has branches in all important cities, adding that it is now expanding in the Northeast. As of November 2024, LIC MF has managed assets of Rs 3,000 crore in the state, ranking second among its top investors.