LIC Mutual Fund on September 20, 2024 announced the launch of LIC MF Manufacturing Fund. The open-ended equity scheme will follow the manufacturing theme.
The fund will be benchmarked to the Nifty India Manufacturing Index (Total Return Index).
NFO Details
The new fund offer (NFO) opened on subscription on September 20, 2024 and will close on October 4, 2024.
The units under the NFO will be allotted on October 11, 2024. During the NFO, the minimum amount for application and/or switch-in will be Rs 5,000 and in multiples of Re1 thereafter.
The scheme will re-open for subscription on October 16, 2024.
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The scheme is available in both regular and direct plans and growth and income distribution cum capital withdrawal (IDCW) options. The IDCW sub-options will have reinvestment of income distribution cum capital withdrawal option and payout of income distribution cum capital withdrawal option.
LIC Mutual Fund further said that the default option for the NFO will be growth option in case nothing is indicated.
What Will Be The Fund Portfolio?
According to an official release, the fund will aim to provide a diversified portfolio of companies that come under the ambit of manufacturing themes, including, but not limited to automobiles, pharmaceuticals, chemicals, heavy engineering products, metals, shipbuilding, and petroleum products.
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The scheme may also create a segregated portfolio of debt and money market instruments in case of a credit event and to deal with liquidity risk in line with regulatory guidelines, the scheme information document states.
Who Should Invest?
According to the fund’s scheme information document (SID), this product is suitable for investors who are seeking capital appreciation over the long horizon, particularly in equity and equity-related instruments of companies following the manufacturing themes.
R K Jha, managing director and CEO, LIC MF said in a statement: “India’s robust GDP growth, rapid urbanisation, the growing middle-class population, the government’s export incentives and policy initiatives, such as production-linked incentive scheme and ‘Make-in-India’ are driving demand for manufactured goods.”
He said the country is largely being developed as a manufacturing hub for the world. “Manufacturing has a major role to play in making India a $5 trillion economy by 2027. As a result, the investors in the manufacturing theme may benefit from the current positive outlook for the constituent sectors,” he added.
