LIC Mutual Fund Introduces Two New SIP Options of Rs.100 and Rs.200
LIC Mutual Fund has created a new set of SIP options, through which investors can make smaller investments from time to time. In further expansion, the asset management company began offering daily SIP with a minimum investment of Rs.100. Sixty instalments might be the minimum that an investor may have to carry on for making investments through the daily SIP option.
But LIC Mutual Fund has changed the terms of daily and monthly as well as quarterly SIP. In the monthly SIP, now the minimum investment can be entered with Rs.200. The least count of instalments is 30. The quarterly SIP term can be set up by making a minimum contribution of Rs.1,000 and the least count of instalments is 6.
These SIP options will be available for all LIC Mutual Fund schemes, however, except for the SIP option in LIC MF ELSS Tax Saver and LIC MF ULIP schemes. The new SIPs are added with flexibility so that investors can make contributions on business days for daily SIPs and between the 1st and 28th of the month for monthly or quarterly SIPs.
This has been in line with the regulatory recommendations of widening public access to micro SIPs. Micro SIPs enable people to contribute as low as Rs.250 a month and are aimed at encouraging those from the poorer sections of society, or for those at the very start of their journey into investing in the equity market.
In actuality, LIC Mutual Fund is targeting those people who are novices to the scheme, that is, students, housewives, and retirees, who may not have contributed to equity-based mutual funds so far. Smaller, manageable investments help them reap the possible advantages of investing in equities in a controlled and structured manner.
But now, the LIC MF ELSS Tax Saver Scheme has been changed since October 16, 2024. According to new rules, the minimum contribution through SIP will be Rs.1,000 every quarter, and further investments may be in multiples of Rs.500. The number of instalments remains at six for this scheme.
The facility of the Step-up SIP has also been restructured. Now, investors can increase the SIP amount by as much as Rs.100; in multiples of Re 1 thereafter. The Step-up SIP facility allows the investor to increase his investment by stepped increments at regular intervals, which helps him to systematically increase his investments, thereby benefitting them more according to changing financial capabilities.
LIC Mutual Fund brings a new form of SIP that’s bound to touch the majority of the investors’ sentiments in a more diversified way, yet remains a step towards financial inclusion and prudent saving through investments.
