LIC Mutual Fund, having missed the growth bus in the past three decades of operations, is on a catch-up bid and has set a target of crossing the Rs 1-lakh-crore-AUM-mark in the next five years.
The past few years have seen the 43-player mutual fund industry growing at an exponential pace both in terms of Assets under management (AUM) and number of folios.
The AUM jumped 14 per cent on-year in June 2022 to Rs 37.74 lakh crore, while the number of folios grew to an all-time high of 13.55 crore, according to the latest Amfi data.
Biggest player SBI Mutual Fund cemented its position with 23.7 per cent growth in AUM at Rs 6.47 lakh crore in the month under review, followed by ICICI Prudential MF at Rs 4.65 lakh crore, pushing the long-time market leader HDFC AMC to the third slot at Rs 4.15 lakh crore.
Kotak MF moved to the fourth place with Rs 2.82 lakh crore AUM, pushing Aditya Birla Sun Life MF to the fifth slot with Rs 2.81 lakh crore. Of the 43 players, the top 10 manage as much as Rs 33.4 lakh crore of the industry-wide AUM of Rs 37.74 lakh crore as of June.
However, LIC Mutual Fund, all through its 33-plus-years of operations, first as a joint venture with Nomura of Japan, was never in the reckoning in terms of AUM despite being the subsidiary of LIC — the nation’s largest financial powerhouse.
But the present management is changing that and has unveiled a five-year growth plan wherein by FY27, it wants to be in the Rs 1 lakh-crore-AUM bracket.
”We’ve chalked out a five-year growth plan. We should be growing by 3.5-4x or at least take our AUM past the Rs 1-lakh-crore-mark by FY27 from where we are now.
”To begin with, we expect to grow at least 70 per cent this fiscal to touch Rs 30,000 crore AUM, aided by new fund launches and also partly aided by the forthcoming merger of the IDBI AMC with us,” TS Ramakrishnan, managing director and chief executive, told
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