LIC MF may consider IPO once AUM reaches Rs 1 trillion: MD RK Jha

LIC Mutual Fund might consider an IPO once its asset under management (AUM) reaches the Rs 1 lakh crore mark, which it was targeting by FY'26, a top official said on Friday.

At present, LIC MF's AUM was around Rs 38,000 crore, a significant jump from Rs 16,526 crore in FY'23.

"We have grown by 67 per cent in FY'24 and our current growth run rate is 30 per cent," LIC MF Asset Management Ltd MD and CEO RK Jha told PTI.

He said the current equity contribution across all funds is 47 per cent, with debt accounting for the remaining 53.

Institutional and corporate investors have put their money mostly in debt funds, while retail participation is skewed towards equity, he added.

"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 with 15 months remaining.

Jha said that to achieve it, LIC MF has taken several initiatives. Among them is expanding its offices by tapping the vast network of Life Insurance Corporation (LIC), establishing distribution channels across various platforms, and deploying technological solutions.

Additionally, LIC MF has reduced the minimum SIP amount to encourage wider participation from retail investors, he said.

"SIP is a strong stable growth driver for us and we believe 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 facilitate greater participation," he said.

Jha said LIC MF is well-positioned in West Bengal with a presence in all major cities and also growing in the Northeast.

As of November, the fund house manages assets worth Rs 3,000 crore in the state, wihich ranks second in its top investors' list.