LIC Mutual Fund is preparing to launch a ₹500 crore Specialised Investment Fund by October 2026, targeting high-net-worth investors with a minimum investment of ₹10 lakh. According to reports from The Hindu BusinessLine, RK Jha, MD and CEO of LIC Mutual Fund, announced the planned launch at the company's new office inauguration on Monday. The SIF will require a minimum investment of ₹10 lakh and will provide exposure to long-short positions and unhedged derivatives, combining traditional mutual funds with Portfolio Management Services. As per The Hindu BusinessLine, Jha confirmed the company has applied to the Securities and Exchange Board of India (SEBI) for approval, with the launch ultimately dependent on regulatory clearance and prevailing market conditions. The SIF category was specifically created for investors who have outgrown standardised mutual fund constraints but do not meet the ₹50 lakh minimum that portfolio management services demand.
LIC Mutual Fund has experienced remarkable growth over the past three years, with AUM increasing from ₹16,526 crore in March 2023 to ₹50,875 crore as of July 31, 2026. As reported by The Hindu BusinessLine, this represents a growth of 208 percent during this period. The fund house has already crossed the ₹50,000 crore AUM milestone and is targeting an aggressive goal of ₹1 lakh crore by March 2027. Despite this substantial expansion, the fund house currently holds only a fraction of India's total mutual fund AUM, which industry estimates at around ₹82 lakh crore. Jha acknowledged that the company was not a 'serious player' earlier due to administrative control and fund management factors.
The company has set an aggressive target to scale its AUM to ₹1 lakh crore by March 2027, representing a 2X growth from current levels. According to The Hindu BusinessLine, Jha indicated that while the original target was March 2026, market volatility since late 2024 has affected investor sentiment and inflows. He noted that if geopolitical uncertainties ease and equity markets recover, the target could be achieved by year-end. To achieve this goal, LIC Mutual Fund will focus on three key segments: retail investors through systematic investment plans (SIPs), bank distribution partnerships and corporate and institutional clients. The growth strategy will be supported by Systematic Investment Plans and partnerships with banks and corporations.
LIC Mutual Fund currently operates 42 funds across equity, hybrid, and debt strategies, with equity funds accounting for nearly ₹20,000 crore in AUM. As reported by The Hindu BusinessLine, the company maintains 58 offices across the country and plans to expand to 100 stores in the coming years. The firm's AUM in Tamil Nadu stands at around ₹2,000 crore, which it aims to scale to ₹20,000 crore in the next few years. Monthly SIP inflows remain strong at ₹30,000 to ₹32,000 crore despite volatile market conditions. However, Kumar indicated that the company is not planning to launch any new equity-oriented funds immediately due to current market conditions, with fresh launches potentially considered in the second half of the financial year depending on market signals.
While thematic funds including Manufacturing, Consumption and Multi-Asset Allocation Funds have seen good investor response, the technology fund has experienced more subdued demand due to AI-led disruption concerns. According to The Hindu BusinessLine, Jha noted that while volatile markets can lead to some SIP stoppages, overall investor confidence in mutual funds remains strong. The company's focus on expanding its physical presence and diversifying its fund offerings reflects its commitment to capturing a larger share of India's mutual fund market. The proposed SIF launch comes as LIC Mutual Fund continues its operational preparations, with employees undergoing the required certification process for the new fund category.
