The Hindu Business Line : LIC MF targets Rs 6,500-cr AUM by fiscal-end

LIC Mutual Fund has set a target of achieving assets under management (AUM) of Rs 6,500-crore by the end of current fiscal year, its Chief Executive Officer, Mr M.V. Suryanarayana, announced here on Wednesday.

The mutual fund currently has an AUM of Rs 4,000 crore.

Addressing newspersons after opening of the area office here, he said the MF was planning to come out with two new schemes shortly for raising Rs 500 crore from each scheme. The balance for the targeted amount would come from the existing open-ended funds, he said.

Keeping in view the changes in the financial markets and to help investors realise the best possible returns, the MF plans to come out with a `floater MIP' and a `dynamic equity fund', he said.

According to Mr Suryanarayana, the MF has already filed the papers with the Securities and Exchange Board of India (SEBI) and expects the approvals shortly.

While the initial public offer for the `floater MIP' fund would be launched during September first week, the IPO of `dynamic equity fund' would open by October-end. Further, the MF is also planning to come out with a `fixed maturity fund' before the year-end, Mr Suryanarayana said.

The MF currently has 13 open-ended funds ranging from money market to pure equity. Of this, five are equity funds and the rest are debt funds.

As a part of its plans to achieve the targeted AUM, the MF has also embarked on expanding its network. Currently, having 14 offices in important locations, LIC MF plans to open six more offices during this fiscal and at least another eight offices next fiscal, the CEO said.

According to Mr Suryanarayana, the investors should invest at regular intervals in the equity schemes to realise better returns in the long-term instead of a one-time investment.

Systematic investment was the best option from the mutual funds and investors should take advantage of the facility.

Further, he advised the investors who desire long-term safe returns to choose a debt fund or MIP with a small equity exposure.