Encouraging wider retail participation, LIC Mutual Fund lowers daily minimum SIP limit to Rs 100

A move to promote financial inclusion with affordable investment options.

In a move aimed at boosting financial inclusion and attracting more retail investors, LIC Mutual Fund has announced a significant reduction in its Systematic Investment Plan (SIP) limits. The daily SIP amount has been reduced to just Rs 100, and the minimum monthly SIP investment now stands at Rs 200. This change is part of LIC Mutual Fund's efforts to make mutual fund investments more accessible to a broader population, especially in smaller cities and towns.

Key highlights of the announcement

• Daily SIP minimum amount: Reduced to Rs 100 for select LIC Mutual Fund schemes.
• Monthly SIP minimum amount: Now starts at Rs 200 for select schemes.
• Quarterly SIP minimum amount: Reduced to Rs 1,000.
• Step-up facility: Minimum step-up revised to Rs 100, offering greater flexibility for investors.
• Eligibility: Changes apply to all existing schemes except LIC MF ELSS Tax Saver and LIC MF Unit-Linked Insurance Plan.
• Effective Date: The new SIP limits will take effect from October 16, 2024.

SIP frequency and details

• Daily SIP: Rs 100 minimum, with at least 60 instalments.
• Monthly SIP: Rs 200 minimum, with at least 30 instalments.
• Quarterly SIP: Rs 1,000 minimum, with at least 6 instalments.

Driving Financial Inclusion
This move aligns with SEBI’s recent recommendation for small-ticket SIPs to encourage greater retail participation in mutual fund investments, especially from smaller towns and cities. By lowering the entry barrier, LIC Mutual Fund aims to attract a broader base of investors who can now begin their investment journey with as little as Rs 100.

Management Comments
RK Jha, Managing Director & Chief Executive Officer, LIC Mutual Fund, stated, "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. India’s labour force makes up about 56 per cent of the total population, yet only a fraction actively invests in mutual funds. This change will facilitate the entry of retail investors from smaller towns, contributing to financial inclusion and allowing more people to benefit from India’s consistent economic growth."

Disclaimer: The article is for informational purposes only and not investment advice.