LIC Mutual Fund Lowers Minimum Daily SIP to Rs 100

LIC Mutual Fund has introduced a lower minimum daily Systematic Investment Plan (SIP) amount, making mutual fund investments more accessible. Investors can now start a daily SIP with just Rs.100 and in multiples of Re.1 thereafter, effective from October 16, 2024. This reduction applies to select schemes managed by LIC MF and aims to attract more retail investors, particularly from smaller cities and towns.

Details of SIP Reduction

With the changes, LIC Mutual Fund is making efforts to make investing more accessible, especially with the addition of daily SIP options for the LIC MF Liquid Fund. However, this reduction is not applicable to the LIC MF ELSS Tax Saver Fund and LIC MF Unit-Linked Insurance Plan.

Driving Financial Inclusion

This follows SEBI’s recommendation to introduce smaller-ticket SIPs to encourage greater participation from retail investors. RK Jha, Managing Director and CEO of LIC Mutual Fund emphasized that small-ticket SIPs will drive financial inclusion by reaching investors in semi-urban and rural areas. “The benefit of India’s stable and consistent economic growth should reach the common man,” he said.

Step-Up Facility

Additionally, LIC MF has revised the step-up facility, allowing investors to increase their SIP contributions in steps of Rs.100 and in multiples of Re 1 thereafter. This gives investors the flexibility to gradually increase their investments based on their financial growth.

Conclusion: LIC Mutual Fund’s initiative is expected to attract a broader audience of investors, allowing even those with smaller amounts to participate in the market. With its brand legacy and network, LIC MF is making mutual fund investments more accessible to the masses, helping with overall financial inclusion.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.