LIC Mutual Fund sees 300% jump in ‘Pocket SIP’ accounts

LIC Mutual Fund has recorded over 300% growth in ‘Pocket SIP’ accounts within a year of launch, fuelled by demand from first-time earners, millennials, and Gen Z investors accessing the product largely through fintech platforms.

“As of September 15, our Pocket SIPs have grown to 1.11 lakh. We are seeing strong participation from low-income groups and newly employed individuals,” said Ravi Kumar Jha, MD & CEO of LIC Mutual Fund.

The number of Pocket SIP accounts has risen from fewer than 350 in the same period last year with around 10,000 new accounts being added every month. Jha, however, declined to disclose the total AUM of Pocket SIPs, citing their relatively small share due to the small-ticket sizes.

All about LIC Choti SIP

Pocket SIP, launched by LIC MF in October 2024—months before SEBI rolled out its ₹250 ‘Choti SIP’ in February 2025—offers flexibility for investors to start with as little as ₹100 per day, ₹250 per month, or ₹1,000 per quarter, with no upper limit. 

Jha said nearly 90% of Pocket SIPs are sourced through fintech platforms. “We don’t do any marketing activity. These platforms allow comparison across all 50 AMCs, enabling Gen Z and millennials to invest based on performance and track record. Of course, the performance of our equity schemes has been the major pull factor, and we have strengthened our equity team to build on that,” Jha noted.

LIC MF’s overall AUM climbs 160%

Alongside the Pocket SIP traction, LIC MF’s overall AUM has risen more than 160% to ₹44,000 crore, compared with ₹16,500 crore when Jha took charge as CEO in April 2023. In the last six months alone, AUM has expanded by over ₹11,000 crore, driven by both retail and institutional participation. Retail investors contribute about 60% of the AMC’s total AUM.

The fund house has seen strong traction in debt products as well. “Our money market fund, which had only ₹20–25 crore at the beginning of FY25, has grown to over ₹3,000 crore and has become the toast of corporates because returns are 40–50 basis points higher than liquid funds,” Jha said. 

Of the total ₹44,000 crore AUM, equity schemes account for more than ₹19,000 crore, while debt funds contribute about ₹25,000 crore. The remainder is through Gold ETFs and fund-of-funds.

Almost 80% of SBI MF’s business comes through distributors and LIC agents. The company’s monthly SIP accounts also rose sharply from just 45 crore in April 2023 to 125 crore now. It plans to double this to 250 crore by March 2026, with an aspiration to reach ₹1 lakh crore in AUM by then. “Even if we fall short, getting close will give us significant brand visibility,” he added.

Looking ahead, LIC MF plans to enter the specialised investment fund (SIF) segment to attract high-net-worth investors. The AMC is in the process of appointing a fund manager and preparing documents to seek SEBI’s approval for its first SIF launch by the fourth quarter of FY25.