NFO Update: LIC Mutual Fund Launches New Multi-asset Allocation Fund

LIC Mutual Fund has launched the LIC MF Multi Asset Allocation Fund which an open ended scheme investing in Equity, Debt and Gold. LIC is an asset management company (AMC) that offers different types of mutual fund plans including equity, debt, hybrid, ETF, and index funds. These schemes are managed by experts who help investors grow their money over time.

The new fund offer (NFO) of the scheme is going to open for subscription on January 24 and will be closed on February 7. The scheme will be available for ongoing purchase and sale on February 18.

The primary objective of this scheme is to generate capital growth through investing in a diversified portfolio of equity and equity-related instruments, debt and money market instruments, and units of gold exchange-traded funds (ETFs).

The scheme will be managed by Nikhil Rungta, Sumit Bhatnagar, and Pratik Harish. The multi-asset allocation fund will be compared to a benchmark made up of 65% Nifty 500 TRI, 25% Nifty Composite Debt Index, and 10% Domestic Gold Price.

The minimum investment amount (excluding fresh purchases through SIP) is Rs.5,000, with additional investments in multiples of Re. 1. For monthly SIP, the minimum investment is Rs.200, with additional investments in multiples of Re. 1.

The scheme will invest 65-80% in equity and equity-related instruments, 10-25% in debt and money market instruments, and units of gold ETFs. It will also allocate 0-10% in silver ETFs and 0-10% in units of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).

The fund will invest across key asset classes such as equity, debt, and gold. Additionally, the scheme will follow an active investment strategy, where the fund manager has the flexibility to adjust allocations based on market conditions and risk management needs and to maximize returns.

The fund will use a tactical asset allocation strategy, adjusting its exposure to each asset class based on current economic and market conditions while following the asset allocation pattern. The equity portion will be spread across different market caps. The equity strategy will combine both top-down and bottom-up approaches to identify investment opportunities.

Investors who want to build wealth over the long term, diversify their portfolios, have an investment horizon of three years or more, and seek optimal risk-adjusted returns should consider investing in this fund.

The scheme is appropriate for investors who are looking for long-term capital growth and seeking a diversified portfolio that includes equity and equity-related instruments, debt and money market instruments, and units of Gold ETFs, in line with the asset allocation pattern.