LIC Mutual Fund seeks to raise ₹1,500 crore through its new fund offering LIC Multi-Cap Fund (LMCF), while it aims to increase the share of equity funds in AUMs (assets under management) to 45 per cent from the present 30 per cent in the next couple of years.

The company focused more on debt funds in the past. However, in the last 3-4 years, it has strengthened the focus on equity funds as well. As part of this, it has been coming out with new schemes and expanding the team to create adequate expertise in order to handle various sectors and different kinds of funds.

Its new scheme LMFC, an open-ended equity scheme, opened on October 6, and will close on October 20. The scheme will reopen for ongoing subscription from November 2.

“In this scheme, fund managers will look not only into price-earnings ratio but also growth, that is PEG ratio. PE along with the growth will provide a clear idea. We have fixed an internal target of mopping up ₹1,500 crore through this new scheme,” said TS Ramakrishnan, MD &CEO, LIC Mutual Fund.

“Over the past 3-4 years, some of our funds did well and they include large and mid-cap funds, banking and financial services fund and infrastructure fund,’‘ he added.

At the industry level, equity funds contribute about 45 per cent of the total AUM. “In our case, equity funds make up about 30 per cent of our AUM, which is presently at about ₹18,000 crore. Our target is to take the share to 45 per cent on par with the industry level by 2024. It may go up further in the future, he said.

The company has set a target to be among the top 10 mutual fund houses in the next five years, up from the ranking of 22 as of March 2022. It is looking at both organic and inorganic growth and is exploring the possibilities of acquiring funds of other houses such as IDBI.

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