LIC Mutual Fund reduces daily minimum SIP limit to Rs 100

LIC Mutual Fund Asset Management Company (AMC) has made it easier for small investors to start investing by reducing the minimum Daily Systematic Investment Plan (SIP) amount to Rs 100. Investors can now begin a SIP with just Rs 100 and in multiples of Re 1 thereafter for select schemes of LIC Mutual Fund (LIC MF). Additionally, LIC MF has introduced the Daily SIP option in its Liquid Fund, further broadening the opportunities for investors to grow their money.
In a move that aligns with making mutual fund investments more accessible, LIC MF has also lowered the minimum monthly SIP limit to Rs 200 and the quarterly minimum SIP limit to Rs 1,000 for select schemes. These changes, which are set to come into effect from 16th October 2024, offer more flexibility for investors, especially those with smaller budgets.
The revised step-up facility, which allows investors to increase their SIP contributions, has also been updated. Investors can now increase their SIP amount by Rs 100, with increments in multiples of Rs 1 thereafter. However, it’s important to note that these reductions are not applicable to all schemes. The LIC MF ELSS Tax Saver and LIC MF Unit-Linked Insurance Plan are excluded from these changes.
These new limits are part of a broader effort to encourage more people, especially younger investors and those from smaller towns, to start investing in mutual funds. By making it possible to start with just Rs 100, LIC Mutual Fund hopes to drive greater participation in financial markets from retail investors across the country.
These new limits come in response to guidelines from the Securities and Exchange Board of India (Sebi), which has recently introduced initiatives to improve the accessibility of mutual fund investments in the country.
“We are excited to introduce the Rs 100 Daily SIP as part of our initiative to attract more youngsters and the working population into mutual fund investments. As per the Periodic Labour Force Survey (PLFS) conducted by the National Statistical Office (NSO) in 2022-2023, workers account for about 56% of the total population in the country. The launch of small-ticket SIPs will enable more retail investors from smaller cities and towns to participate in mutual funds, thereby driving financial inclusion across India,” said RK Jha, Managing Director and Chief Executive Officer of LIC Mutual Fund.
He also pointed out that mutual fund investor numbers have been rising steadily, with the Association of Mutual Funds in India (AMFI) reporting that unique investors, based on PAN and PEKRN, crossed 5 crore in September 2024.