Pocket SIP – SIP of lower denominations – LIC Mutual Fund
Pocket SIP
Problem
• Affordability challenges preventing small investors from entering mutual funds.
• Need for convenient, digitally enabled investment options.
• Lack of financial discipline among new and young earners.
• Low awareness of long-term benefits of compounding through micro-investments.
• Requirement to create opportunities for small, regular investments for wealth creation.
Solution
• Coordinated with RTA and payment gateway partners to enable micro-denomination SIPs.
• Designed SIPs allowing investment as low as ₹100 per day and Rs. 200 per month.
• Ensured seamless setup and management through digital systems.
• Integrated micro-SIP support across platforms for accessibility.
• Focused on simple onboarding to encourage mass participation.
Outcomes
• Over 1,30,000 people registered under the smaller denomination SIP model.
• Significant rise in participation from low-income and first-time investors.
• Strengthened acceptance of micro-investment behaviour among new-age users.
• Greater financial inclusion through accessible, digitally managed SIPs.
• Demonstrated strong growth, with over 300% increase in account openings.
SKOCH Award Nominee
Category: Social Excellence
Sub-Category: Community Engagement and Development
Project: Pocket SIP – SIP of lower denominations
Start Date: 8-01-2024
Organisation: LIC Mutual Fund
Respondent: Saurabh Vashistha
www.licmf.com
Level: BFSI – 1
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Case Study
Pocket SIP – SIP of lower denominations was introduced by LIC Mutual Fund Asset Management Limited with a clear intention of making mutual fund investing accessible to individuals who traditionally found entry barriers too high. The initiative emerged from the growing need for micro-investment options that could support the financial aspirations of low-income earners, newly employed individuals, and younger segments such as millennials and Gen Z. As mutual fund participation increasingly shifted toward digitally driven habits, it became essential to offer a model that was both affordable and simple to operate.
The project was launched on 1 August 2024 and structured to allow users to begin with very small amounts—₹100 per day, ₹250 per month, or ₹1,000 per quarter. This flexibility enabled people with limited disposable income to begin systematic investing without financial strain. The organisation coordinated with its registrar, transfer agent, and payment gateway partners to ensure the operational feasibility of small-ticket SIPs and to integrate the feature within digital platforms. Over the evaluation period, spanning from August 2024 to November 2025, the initiative gained rapid acceptance, demonstrating that affordability and digital convenience together could remove long-standing psychological and financial barriers to investing.
The project also contributed to improving financial discipline by encouraging users to maintain consistent investment behaviour. This was particularly valuable for young professionals beginning their financial journey. As users continued investing, the benefit of compounding at small denominations became clearer, positioning Pocket SIP as a practical tool for long-term wealth creation. Internal teams, including product development and communications, played crucial roles in managing the launch, public awareness, and ongoing upkeep of the initiative.
One of the most notable outcomes of the project was its adoption scale. More than 1.11 lakh accounts were opened, indicating a growth of over 300% within a year. This response showed that small-ticket SIPs addressed a real gap in the market and appealed strongly to the target user groups. The initiative’s impact was reinforced through fintech-enabled onboarding, which helped streamline registration and improve monitoring for users. The project also created opportunities for mutual fund penetration beyond Tier 1 cities, broadening financial inclusion nationwide.
For more information, please contact:
Saurabh Vashistha at s.vashistha@licmf.com
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