LIC Mutual Fund aims to launch a ₹500 crore Specialised Investment Fund by October, requiring a minimum investment of ₹10 lakh. The fund will utilize complex strategies like long-short positions. This move follows a strong growth phase where the company’s AUM rose by 208% to over ₹50,000 crore in three years.
LIC Mutual Fund is expanding its product lineup with a new Specialised Investment Fund (SIF) aimed at gathering ₹500 crore. The product, which is currently awaiting regulatory approval, is designed for high-ticket investors with a minimum entry requirement of ₹10 lakh. By incorporating strategies such as long-short positions and unhedged derivatives, the fund house is looking to bridge the gap between standard mutual fund products and more complex Portfolio Management Services.
Scaling Assets Amidst Market Volatility
The fund house has seen a rapid rise in its scale of operations over the last three years. According to internal performance data reported by the company, Assets Under Management (AUM) grew by 208%, moving from ₹16,526 crore in March 2023 to ₹50,875 crore by July 31, 2026. While this represents a significant internal achievement, the company’s share of the broader Indian mutual fund industry remains small, with the total industry AUM currently hovering around ₹82 lakh crore.
Expansion Targets and Operational Strategy
Leadership at LIC Mutual Fund has set an ambitious goal to reach an AUM of ₹1 lakh crore by March 2027. This objective was originally slated for completion by March 2026 but faced delays due to market volatility and shifting investor sentiment that began in late 2024. To reach these targets, the company is focusing on increasing its physical presence, with plans to expand its network from 58 to 100 offices.
Growth is expected to be driven by Systematic Investment Plans (SIPs) and deeper partnerships with banks and large corporate entities. Currently, the company manages 42 schemes, with its equity segment accounting for nearly ₹20,000 crore of its total assets. While funds focused on manufacturing, consumption, and multi-asset allocation have seen positive traction, the company noted that its technology-focused offerings have faced more cautious interest from investors, partly due to concerns regarding AI-driven changes in the sector.
Investor Monitorables
The company’s ability to attract capital into this new specialized fund will be a key area for investors to watch, particularly given the higher investment threshold and the complex nature of the strategies involved. Furthermore, the fund house’s success in reaching its revised ₹1 lakh crore AUM target by March 2027 will depend on sustaining its current SIP inflows and successfully navigating market fluctuations that have periodically impacted the industry's growth trajectory.