LIC Mutual Fund Asset Management Company (AMC) has announced a reduction in the minimum amount for the Daily Systematic Investment Plan (SIP) to Rs 100, effective from October 16, 2024. This change aims to enhance accessibility to mutual fund investments, particularly targeting younger investors and the working population.
In addition to the daily SIP adjustment, LIC MF has updated the investment limits for other SIP frequencies: the minimum monthly SIP amount is now set at Rs 200, and the quarterly SIP minimum is Rs 1,000. The quarterly SIP will require a minimum of six instalments, with subsequent contributions in multiples of Rs 500.
The revised step-up facility for all existing SIP schemes will also take effect on October 16, with a minimum amount of Rs 100 and increments of Re 1. However, this adjustment does not apply to the LIC MF ELSS Tax Saver and LIC MF Unit-Linked Insurance Plan.
SIP Frequency and Investment Limits:
Daily SIP: Minimum Rs 100 (increments of Re 1); available on all business days; minimum of 60 instalments.
Monthly SIP: Minimum Rs 200 (increments of Re 1); any date from the 1st to the 28th; minimum of 30 instalments.
Quarterly SIP: Minimum Rs 1,000 (increments of Rs 500); any date from the 1st to the 28th; minimum of 6 instalments.
RK Jha, Managing Director & CEO of LIC Mutual Fund, expressed enthusiasm for the new Rs 100 daily SIP initiative, emphasizing its potential to attract a broader range of retail investors, particularly from smaller cities and towns. According to data from the Periodic Labour Force Survey (PLFS) conducted by the National Statistical Office (NSO), workers constitute around 56% of India’s population. Jha noted that the introduction of small-ticket SIPs aligns with the goal of promoting financial inclusion and ensuring that the benefits of India’s economic growth reach the common person.
The changes will be documented in the Scheme Information Document (SID) and Key Information Memorandum (KIM) of the relevant schemes, with all other terms and conditions remaining unchanged.
