LIC Mutual Fund Asset Management Company (AMC) on October 15, 2024 announced that it has reduced the minimum systematic investment plan (SIP) amount in few of its schemes, thus allowing for greater investor participation in mutual funds.
The Securities and Exchange Board of India (Sebi) had recently called on mutual funds to sachetise SIPs to foster greater financial inclusion. Sachetisation means allowing micro SIPs by breaking down minimum SIP instalments into smaller, affordable units.
LIC Mutual Fund AMC said that the daily SIP amount will be reduced to Rs. 100 and multiples of Re. 1 for select schemes within the LIC Mutual Fund portfolio. LIC MF will also offer a daily SIP plan for the LIC MF Liquid Fund. This reduction and below mentioned reduction will apply to all the existing schemes offering SIP, except LIC MF ELSS Tax Saver and LIC MF Unit-Linked Insurance Plan, effective from October 16, 2024.
Further, the AMC has also reduced the minimum monthly SIP investment limit to Rs 200 and the minimum quarterly SIP investment limit to Rs 1,000 for select schemes of the fund house. The minimum number SIP instalments is 60, 30 and six for daily, monthly and quarterly mode, respectively.
Also, the minimum amount step-up facility is revised to Rs. 100 and in multiples of Rs. 1 thereafter.
RK Jha, managing director and CEO, LIC Mutual Fund, said: “We are excited to introduce Rs 100 daily SIP as part of our initiative to attract more youngsters and working population into MF investments. The launch of small-ticket SIPs will enable healthy participation of retail investors into mutual funds from smaller cities and towns to drive financial inclusion across the country further.”
