LIC Mutual Fund Eyes a Bold Comeback with Agent Network

After decades of being a minor player in India’s mutual fund industry, LIC Mutual Fund is preparing for a significant comeback. Backed by its parent company’s unparalleled distribution strength, the fund house plans to mobilize LIC’s extensive army of insurance agents to expand reach and scale assets.

Currently managing ₹44,383 crore in AUM after 36 years of operations, LIC Mutual Fund lags far behind competitors that entered the market around the same time. The renewed push reflects LIC’s intent to finally give its asset management arm the attention it deserves, aiming for a ₹1 trillion AUM target.

Key Highlights

• Strategic Pivot: LIC Mutual Fund to leverage LIC’s massive agent network for distribution.
• Current Position: AUM stands at ₹44,383 crore, far below peers.
• Ambition: Targeting ₹1 trillion in AUM to regain relevance in the sector.
• Challenges: Persistent underperformance in equity schemes raises concerns among experts.
• Parent Strength: LIC’s ₹54 trillion insurance assets provide credibility and distribution muscle.

Sources: India IPO, Groww, Moneycontrol