LIC Mutual Fund has launched its Multi Asset Allocation Fund, an open-ended scheme that invests in equity, debt, and gold to achieve long-term capital appreciation. The New Fund Offer (NFO) opened on January 24 and will conclude on February 7. The scheme will reopen for continuous sale and repurchase on February 18, the company said in a statement.
LIC Multi Asset Allocation Fund NFO Important Dates
- Start Date: 24 January 2025
- Last Date: 7 February 2025
- Scheme reopens for continuous sale and purchase: 18 February 2025
Investment Strategy
- The fund will maintain an allocation across key asset classes—Equity, Debt and Gold.
- The fund manager retains the discretion to adjust allocations based on prevailing market conditions, risk management requirements, and to optimize returns. The Fund Manager also retains the discretion to use hedging/arbitrage strategies to mitigate risk and manage exposure.
- The allocation between equity, debt, Gold ETFs will be managed as per the stated asset allocation pattern. The fund will employ a tactical asset allocation approach, which adjusts exposure to each asset class depending on the prevailing economic and market conditions in line with the asset allocation pattern.
- The equity portion will invest across market caps. The equity strategy will incorporate both top-down and bottom-up approaches to identify opportunities.
- The debt component will focus on high-quality fixed income instruments, balancing duration and credit risk to optimize returns in varying interest rate environments.
- The Scheme may also invest in the Silver ETFs and units of REITs and InvITs for in line with asset allocation pattern.
Asset Allocation
Under normal circumstances, the asset allocation of the Scheme would be as follows:
| Instruments | Indicative allocations (% of total assets) | |
|---|---|---|
| Minimum | Maximum | |
| Equity and Equity related instruments** | 65 | 80 |
| Debt and Money market instruments | 10 | 25 |
| Units of Gold ETFs | 10 | 25 |
| Units of Silver ETFs | 0 | 10 |
| Units issued by Real Estate Investment Trusts (REITs) & Infrastructure Investment Trusts (InvITs) | 0 | 10 |
Exit Load –
| If units redeemed/switched out within 3 months from allotment date | Nil | 1% of applicable NAV |
| If units redeemed/switched out after 3 months from allotment date | Nil | |
Minimum Amount Application
Lumpsum Application Amount (Other than fresh purchase through SIP) – Rs.5,000/- and in multiples of Re.1 thereafter.
SIP Amount -*
- Daily – Rs. 100/- and in multiples of Rs.1/- thereafter.
- Monthly – Rs. 200/- and in multiples of Rs.1/- thereafter.
- Quarterly – Rs. 1,000/- and in multiples of Rs.1/- thereafter.
*SIP Start date shall be after re-opening date of the scheme
Plans and Options
The Scheme offers Regular Plan and Direct Plan.Regular Plan is for investors who wish to route their investment through any distributor.Direct Plan is only for investors who purchase /subscribe Units in a Scheme directly with the Mutual Fund or through Registered Investment Advisor (RIA) and is not available for investors who route their investments through a Distributor.The Regular and Direct plan will be having a common portfolio.
The Scheme shall have the following Options:
- Growth Option
- Income Distribution cum Capital Withdrawal (IDCW) Option*
IDCW Sub Options are:
- Reinvestment of Income Distribution cum Capital Withdrawal.
- Payout of Income Distribution cum Capital Withdrawal
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