At present, the SBI Mutual Fund is the second largest mutual fund with assets under management in excess of Rs 3,100 crore, next only to UTI with Rs 61,000 crore. The LIC Mutual Fund also plans to launch an open-ended dedicated gilt fund and a close-ended income scheme in the current fiscal in addition to other products. Addressing a press conference on the occasion of completing 10 years of LIC Mutual Fund, chief executive officer RG Sharma said: "The emphasis of LIC Mutual Fund has largely been on floating income funds with one year guaranteed returns.

There is a big market and a large appetite among investors forsuch funds and we will continue to cater to this segment. We will also aggressively market the LIC Bond Fund".

Sharma said that according to their observation, there was a perceptible shift in the market towards open-ended schemes and so, the mutual fund plans to convert two of its close-ended schemes namely, Dhanasamriddhi and Dhan Tax Saver 97, into open-ended schemes during the year. The Dhansamriddhi scheme launnched in July 1994 is due for redemption in August 1999 and is a growth scheme. The Dhan Tax Saver '97 an equity linked saving scheme launched in 1997.

Sharma said that during these ten years, the fund had collected nearly Rs 2,500 crore from over 15 lakh investors under 31 schemes.

For LICMF, more than 40 per cent of its mobilisations come from the semi-urban populaiton of the country and so, the mutual funds was devising ways and means to cater this target group and improving a reach to this population. "Around 90 per cent of the agents selling the parent LICs products alos sell the LICmutual fund products even though the agenst have a sign a pact with the mutual fund.

Sharma said that over the years, LICMF's equity investments have been going down with a commensurate rise in its debt portfolio and said that now the mutual fund was an active player in the debt market.