LIC mutual arm offers daily SIP option

The mutual fund arm of the LIC has introduced daily systematic investment plans to shore up its assets under management at a time the flagship indices on both the National Stock Exchange and the Bombay Stock Exchange are setting new records.

For investors, the SIP option would start from as little as Rs 300 daily and would be available for five equity and two hybrid plans of the asset management company.

For LIC Mutual Fund, which registers a SIP inflow of around Rs 23 crore every month, the number is expected to go up to Rs 30 crore following the rise in daily inflow.
“Most asset management companies today offer monthly SIPs. At LIC, we are trying to encourage investors to build a habit of investing daily. The daily SIP option is available on equity funds and hybrid funds. A sum of Rs 300 invested daily across 22 working days means the monthly investment works out to around Rs 6,600. With the market giving an overall good return, investors could consider SIP on a daily basis,” said Rajesh Patwardhan, the chief marketing officer of LIC Mutual Fund.

Through SIPs, an individual can buy units at a given date and take advantage of compounding returns. SIP has been gaining popularity among Indian mutual fund investors as it encourages investing in a disciplined manner without worrying about market volatility and the timing the market.

According to data from industry association Amfi, mutual fund houses added about 9.26 lakh SIP accounts each month on an average during 2017-18, with an average SIP size of about Rs 3,300 per account. The monthly SIP inflow in December 2017 was Rs 6,200 crore.

Patwardhan said the mutual fund firm was bullish on the market and expected rising inflows into the equity mutual funds. LIC Mutual Fund’s average asset under management for the October-December quarter stood at Rs 22,114.39 crore, according to Amfi data.source : telegraphindia

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