Mid-sized fund house LIC Mutual Fund (MF) has set an ambitious target to reach AUM (assets under management) of Rs 2,500-3,000 crore by March 2017, in Karnataka. At present, the state contributes roughly Rs 700 crore in AUM to the company.
LIC MF is the 17th largest mutual fund in India, with total AUM of about Rs 20,000 crore and endeavours to reach Rs 30,000 crore by March 2017.
Talking to DH, LIC Mutual Fund Chief Marketing Officer Rajesh Patwardhan said, “Our aspiration is to reach around Rs 2,500-3,000 crore in Karnataka by March 2017. Of this, Rs 2,500 crore will be from institutional sales and the rest from retail.”
He added that they are planning to have a new team and will bring new regional heads from different markets on board. “We are broadening our horizons by taking private IFAs (independent financial advisors) and we are increasing our reach,” Patwardhan said.
When Patwardhan joined LIC MF in February this year, the AUM was Rs 10,000 crore and within a span of eight months, the company took it to Rs 20,000 crore.
The current shareholders of LIC Mutual Fund are LIC (45% stake), LIC Housing Finance (39.3%), GIC Housing Finance (11.7%) and Corporation Bank (4%). LIC Mutual Fund, which was known as LIC Nomura AMC prior to the exit of its Japanese partner early this year, is now aiming to be among the top three fund houses in the next three years.
Talking about digital and its presence, Patwardhan said, “After the Nomura exit, we rechristened ourself as LIC MF and we have our own website and are active in the digital space. We have formed a mascot Nivesh Guru, which is a part of investor education programmes, that will take you B15 (beyond) places.”
While for the MF industry, the western region contributes around 50-55%, north 22%, south 18-20%, for LIC MF, the western region dominates with 74%, south 12%, North 10-11%, and the rest comes from the eastern region.
There are 43 players in the industry and the total AUM touches around Rs 15 lakh crore, and SIPs are valued at Rs 4,000 crore.
“We do have unique products like APPs (auto premium payment system). Under this, a policy-holder has to invest in any of the three schemes of LIC Nomura, namely Liquid Fund, Savings Fund and Income Plus Fund, from which premium on due date will be paid to the insurance company. This will ensure timely payment of premium with minimum chances of lapse of LIC policies. We have such products in B15 towns that contribute to incremental revenues,” Patwardhan said.(News Courtesy : deccanherald)