LIC will invest Rs. 25 crore in LIC Mutual Fund

The board of Life Insurance Corporation authorised a preferential capital infusion of Rs. 25 crore into LIC Mutual Fund Asset Management Ltd (LIC AMC).

LIC disclosed the investment decision to the stock exchanges.

Presently, LIC owns a 45% interest in LIC AMC, with LIC Housing Finance holding a 39.30% stake, GIC Housing Finance holding an 11.70% stake, and Union Bank of India holding a 4% stake.

This July, LIC Mutual Fund successfully acquired IDBI Mutual Fund, and the two funds amalgamated, taking effect on July 29.

The calculated action aligned with its objective to enhance and broaden its range of products, broaden its presence, and increase the assets under management in order to become a dominant force. As of June 30, the 1989-launched LIC MF had an AUM of Rs. 18,400 crore, while the IDBI MF had Rs. 3,650 crore. In March of this year, the Competition Commission of India (CCI) gave its approval for LIC MF to acquire IDBI MF.

The AUM of LICMF was Rs. 17,600 crore at the end of 20223. About Rs. 8,000 crore, or roughly 45%, of the total AUM was made up of equity, with debt schemes accounting for the remainder Rs. 9,600 crore.

The market share of LIC MF is less than 0.5% of the overall AUM of the sector. It had stated earlier this year that it wants to increase it to 1% within the next 510 years. LIC MF is considering an

Rs. 27,000 crore in AUM at the conclusion of the current fiscal year. LICMF has over 45,000 distributors as of May of this year, with over 50% of them being LIC agents.