LIC Mutual Fund, one of the oldest in the industry, targets to hit ₹1 lakh crore AUM in next two fiscals from the current level of ₹32,000 crore, given the buoyancy in the equity market and planned deeper penetration into smaller towns.

The fund house, which acquired IDBI Mutual Fund last year, has registered 78 per cent growth in AUM to ₹32,000 crore so far this fiscal against ₹17,978 crore in December quarter last year and is confident of closing this fiscal with an AUM of ₹35,000 crore.

Ravi Kumar Jha, Managing director and CEO, LIC MF told businessline said the equity markets are on the roll and investors are reaping the benefits of disciplined investment in mutual funds which is quite evident from monthly inflows through systematic investment plan.

Major beneficiary

LIC Mutual Fund was one of the major beneficiary of the bull run and the fund house asset is set to touch ₹50,000 crore by next fiscal-end and reach ₹one lakh crore by the end of March, 2026, he said.

It has completed integration of IDBI MF scheme with itself and has gained about ₹3,500 crore AUM from the acquisition. Of the 20 equity schemes inherited from the acquisition, 10 has been merged and rest has been retained as standalone with revised LIC MF branding.

Team strength

LIC MF plans to almost double its equity fund manager and research team strength to 20. “We have about 22 equity schemes and 17 other schemes including debt. Depending on the market feedback we may launch a few thematic funds in April,” said Jha.

With the strong parentage, the fund house is focusing on tier-II and -III cities and handholding distributors of LIC products to clear the National Institute of Securities Market certification exam for mutual fund distributors. “We are conducting classes for insurance distributors who are also very keen to learn as it will provide extra income for them. It has been a win-win proposition,” he added.

The fund house has 55,000 registered distributors and plans to increase it substantially soon. LIC MF is also bullish on passive funds space and its recent offering of LIC MF Nifty Midcap 100 ETF was received well.

Jha said the passive fund AUM of the industry has gone up substantially to ₹8.84 lakh crore in January, accounted for 40 per cent of equity AUM of ₹20.53 lakh core, and this reflects investors interest in this segment of MF offering.