LIC Mutual Fund Eyes Inorganic Growth to Boost AUM

LIC Mutual Fund, part of financial giant LIC, aims for inorganic growth to enhance its assets under management (AUM). With a current AUM of Rs 33,000 crore, the company is eyeing a fund house acquisition. The firm targets an AUM of Rs one lakh crore by March 2026 and plans to expand its branch network and digital capabilities.

LIC Mutual Fund, an associate company of the financial behemoth LIC, is actively seeking inorganic growth avenues to expand its assets under management (AUM), as stated by a company executive.

Currently, the LIC Mutual Fund boasts an AUM of Rs 33,000 crore as of July 2024. According to Ravi Kumar Jha, Managing Director and CEO, the company is preparing for a fund house acquisition, a plan that's already on the drawing board.

In July 2023, the firm acquired IDBI Mutual Fund at a cost of Rs 133 crore. Jha emphasized that funding a new buyout won't be an issue and that targets for AUM are set at Rs 60,000 crore by the end of the fiscal year and Rs one lakh crore by March 2026. Following a budget change that increased short-term capital gains tax from 15% to 20% for redemptions within a year, Jha noted that this move would benefit investors. The company also plans to expand its branch network from 36 to 50 branches and to enhance its digital integration with platforms like Zerodha and Upstox.

Furthermore, LIC Mutual Fund is in the process of bolstering its equity fund management team to support these growth initiatives.

(With inputs from agencies.)