By merging with IDBI Mutual Fund and launching new funds, LIC Mutual Fund anticipates making money would help it reach its goal of controlling Rs 30,000 crore in assets by the end of March.
- The LIC Mutual Fund is anticipated to produce income, raising its operating resources to Rs. 30,000 crores by March.
- The intersection will get 3 lakh more retail visits from LIC Mutual Fund, boosting its retail base by 5.5 lakh.
- According to the CEOs, a 50/50 capital mix is ideal for debt and equity financing.
The IDBI NSE-0.15 Mutual Fund Junction and the introduction of new funds are desired to generate revenues for the LIC Mutual Fund, increasing its operational means to Rs. 30,000 crores by March.
Three new budgets, including one this month, are planned for release by the LIC fund house.
“Our means under management at the end of FY22 were close to Rs.17,500 crores (AUM). By the end of this fiscal year, we intend to increase this by more than 70%, to about Rs 30,000.” According to T S Ramakrishnan, managing director, and chief executive officer of LIC Mutual Fund, to PTI on Thursday.
He said that the optimism was based on the fact that fund inrushes were still vital, and that this should assist raise about Rs.10,000 crores from brand-new fund launches and another Rs.3,000 crores from the union of IDBI Mutual Fund.
IDBI Mutual Funds’ endorsements
Following regulatory approvals, it is envisaged that the integration of IDBI Mutual Fund with the business would be completed over the next three to four months.
Since Sebi prevents a single member from holding multiple schemes, Nityanand Prabhu, Executive Director and Business Head of LIC Mutual Fund, asserts that of the 20 funds administered by IDBI Asset Management Company, 10 would be preserved and the other 15 would be integrated with the current schemes.
Additionally, 3 lakh new retail visitors from LIC Mutual Fund would visit the junction, increasing its retail base by 5.5 lakh.
Fixed income plans from LIC
LIC Mutual Fund, which has previously rejected fixed income schemes, has submitted applications for three new debt-equity and plutocrat request plans.
To implement the new ethical standards around the pooling of funds, Sebi has imposed a three-month restriction on the opening of new funds beginning on April 1. Several fund firms, including LIC MF, have launched new plans after the regulation expired on July 1.
Launching fresh funds has historically assisted in establishing a home and generating inrushes. For example, the assiduity gathered more than Rs.12,000 crores in new funding in only the second half of 2021, with the majority of the amount coming in just two months.
According to Ramakrishnan, the business now has 26 active schemes and has received approval for its new plutocrat request fund, from which it expects to raise at least Rs.1,000 crores during the main trading period, which will start later this month.
In light of the request’s erratic nature, Prabhu said that they merely expect to get around Rs 500 crore from the new multi-cap equity fund. Sebi must approve the fund before it can proceed.
He said that the present AUM of Rs.17,500 crores are dominated by about Rs. 10,000 crores in loan financing, Rs. 5000 crores in equity finances, and Rs. 2,500 crores in ETFs, of which around Rs.1000 crore is in G- Secs and SDLs (State Development Loans).
The best capital mix for debt and equity financing, according to the executives, is 50/50.
The average AUM of the assiduity decreased as a result of the huge departure, falling from Rs37.37 lakh crore at the end of May to Rs 36.98 lakh crore at the end of June, according to data from the assiduity organization Amfi.