Now Reading: LIC Mutual Fund plans ₹500 crore SIF launch by October
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LIC Mutual Fund plans ₹500 crore SIF launch by October
LIC Mutual Fund will launch its first Specialised Investment Fund (SIF) by October, targeting an initial collection of ₹500 crore from high-net-worth investors. The fund has applied to market regulator SEBI for…
The Story in Brief
LIC Mutual Fund will launch its first Specialised Investment Fund (SIF) by October, targeting an initial collection of ₹500 crore from high-net-worth investors. The fund has applied to market regulator SEBI for approval, said MD & CEO Ravi Kumar Jha. SIFs are regulated products that sit between mutual funds and portfolio management services, requiring a minimum investment of ₹10 lakh. The announcement comes as LIC Mutual Fund crossed ₹50,000 crore in assets under management as of July 31.
Jha said the fund is not planning any new equity-oriented fund offerings due to weak market signals, but may consider fresh launches in the second half of the financial year if conditions improve. The asset manager aims to reach ₹1 lakh crore in AUM by March 2027, focusing on retail SIPs, bank partnerships, and institutional clients. Employees are already undergoing certification for the SIF launch.
The Indian Opinion
The hype around SIFs as a magical middle-ground product misses a key point: they are still subject to market risks like any equity-linked scheme. LIC Mutual Fund's cautious stance on equity NFOs due to market volatility is sensible, given the recent retail investor rush. The real test for this SIF will be whether it can deliver net returns that justify the ₹10 lakh minimum ticket over a plain mutual fund. Will SEBI's approval come with tighter disclosure norms that actually protect the affluent investors being targeted here?
Source: thehindu.com
This story was synthesised by AI from the source linked above.
