LIC Mutual Fund's plans to reduce the systematic investment plan amount for the newest launch would be reduced from early next month, Chief Executing Officer Ravi Kumar Jha said.
LIC MF Manufacturing Fund was launched on Friday and will be open till Oct. 4. The SIP amount currently stands at Rs 300 for daily SIP and Rs 1,000 for monthly SIP. The minimum subscription amount for the NFO is Rs 5,000.
The SIP will be reduced to Rs 100 for daily SIPs and Rs 200 for monthly payments. The plan to reduce the amount is to be communicated during the first week of October, according to Jha.
This is in line with the regulator's move to encourage microinvesting. To encourage investors to keep investing, no matter how small the amount. The fund house aims to grow its assets under management to Rs 1 lakh crore by 2025, the said.
The manufacturing new fund offer has an auto-switch facility as well, where the inflows till the closing date will be parked in an overnight fund with about 6.5% interest, according to Jha.
The manufacturing fund aims to hold 50 to 55 stocks that are primarily from the small and mid-cap categories, according to Yogesh Patil, chief investment officer of equities at LIC MF.
The fund primarily aims to invest in equities of companies that work towards import substitution, automobile manufacturing, pharmaceuticals and other areas.
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