LIC Mutual Fund Asset Management Ltd. has planned to increase its share of equity schemes by 10 percentage points to 45%, said MD & CEO T.S. Ramakrishnan.
“We are primarily focused on debt products that account for nearly 65% of our assets under management (AUM) of ₹17,734 crore,” he said.
At present, LIC MF offers 27 products covering debt, equity, hybrid, passive and solution oriented schemes. Going forward, the fund house would focus on increasing its share of equity schemes to industry average of 45% from about 35% through organic and inorganic routes.
While LIC MF has lined up several new products, it is also in advanced stages of acquiring IDBI Mutual Funds to comply with regulatory requirements, the CEO said.
“We will be getting about 22 schemes of IDBI MF. An official announcement will be made soon,” he said.
Mr. Ramakrishnan said that the firm had charted a five-year strategy to be among the top 10 fund houses in the country in terms of AUM. Currently, it is ranked 22nd.
Last week, the fund house rolled out the LIC MF Multicap Fund, an open ended equity scheme, which closes on October 20. It will reopen for subscription on November 2.
“The new fund will help us to hit the 45% mark before March 23 by fetching us ₹1,500 crore against the target of ₹1,800 crore in AUM,” he said.
Regarding the new fund offer, he said it would offer a disciplined diversification of all three market caps – large, mid and small. LICMF would invest a minimum of 25% each in large, mid and small cap stocks and balance 25% will be left to the discretion of fund manager to invest across market capitalisation.