To shore up the Assets Under Management (AUM), LIC has introduced daily systematic investment plans. The minimum investment option is of Rs. 300 daily and would be available for 5 equity and 2 hybrid plans of the asset management company. It is expected to increase the SIP inflow from Rs. 23 crores to Rs. 30 crores with this scheme.
“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.
With investment in SIPs, an individual can buy units at a given date and take advantage of compounding returns. IT gained 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.
