State-owned insurance group LIC (Life Insurance Corporation) has launched a daily SIP scheme that can be started with an investment of amount as low as Rs 300 per day. The scheme has been launched to expand LIC's Systematic Investment Plan portfolio to 30 per cent. Mutual Fund SIP (Systematic Investment Plan) is a safer way to invest in equity without even worrying about market conditions. In SIP, you can invest a pre-determined amount in mutual funds for a specific time and get a return.
The company says in addition to investing on hybrid schemes like LIC MF Balanced Fund and LIC MF Monthly Income Plan, you can choose from the company's five different equity schemes - LIC MF Equity Fund, LIC MF Growth Fund, LIC MF Midcap Fund, LIC MF Infrastructure Fund and LIC MF Index Fund. The company hopes that after the rollout of this scheme, its SIP inflow would increase from Rs 23 crore to Rs 30 crore every month.
"Through daily SIP, the fund house is trying to promote the habit of investing daily and the aim is to create wealth through investing daily with a minimum sum of Rs 300 across 22 working days, which will lead to a monthly investment of Rs 6,600," LIC MF said in a statement.
LIC Mutual Fund chief marketing officer Rajesh Patwardhan said the current financial year has seen a surge of 56 per cent in mutual funds through SIP investments. "Mutual Fund SIP is gaining recognition among the investors as it encourages investing in a disciplined manner without worrying about market volatility and timing the market," Patwardhan said. "We believe that while SIP is a better route to invest in equity, daily SIP will further help in beating the market volatility and benefit our investors from rupee cost averaging," he added.
STEPS TO INVEST IN SIP
- First of all, become KYC compliant by logging online through eKYC. You also need to submit address proof, PAN card and identity proof.
- Select a right intermediary or asset management company (AMC) and choose an SIP plan that suits according to your earning.
- Decide how much you can spare to invest on regular intervals (daily, weekly or monthly). Some companies also offer services like automatic deduction at the select date from your bank account.
- After completing all the formalities, submit your form to the intermediary and AMC.
With PTI inputs