LIC MF Multi Asset Allocation Fund: LIC Mutual Fund has launched its New Fund Offer (NFO), LIC Multi Asset Allocation Fund. This NFO is opening for public subscription on 24th January and can be subscribed till 7th February. It is an open ended equity scheme, for which the benchmarks are NIFTY 500 TRI (65), NIFTY Composite Debt Index (25), Domestic Price of Gold (10). Investment can be made in these NFOs with a minimum of Rs 5000.
NFO details
Fund House: LIC Mutual Fund
Issue Open Date: January 24, 2025
Issue closing date: February 7, 2025
Category : Hybrid Multi Asset Allocation
Minimum investment: Rs 5000
Lock in period: none
Exit load: 1% if redeemed within 3 months
Benchmark: NIFTY 500 TRI (65), NIFTY Composite Debt Index (25), Domestic Price of Gold (10)
Fund Manager: Nikhil Rungta, Prateek Harish Shroff
What is investment strategy?
The investment objective of this scheme is to achieve high returns over the long term by investing in a diversified portfolio across units of equity and equity related options, debt and money market options and gold exchange traded funds (ETFs). Under this scheme, 65-80% in equity and equity related options, 10-25% in units of debt and money market and gold ETFs, 0-10% in units of silver ETFs and real estate investment trusts (REITs) and infrastructure. 0-10% investment will be allocated in units issued by investment trusts (InvITs).
What is the specialty of the fund?
Multi Asset Allocation Fund (MAAF) is a hybrid mutual fund. In this, investments are made in many asset classes like equity, debt, gold, real estate. By investing in these funds, investors get a diversified portfolio and the possibility of getting risk-adjusted returns. By investing in these, the balance between risk and return is better. Their attractiveness increases during market fluctuations. Their performance has been good in the last few years. This multi asset allocation fund will be benchmarked on the basis of 65% Nifty 500 TRI + 25% Nifty Composite Debt Index + 10% domestic gold price.
Who should invest?
Investors who are looking for an investment option that provides stable returns during market volatility can consider investing in multi asset allocation funds. However, despite the ability to deliver stable returns, the risk level of most multi-asset funds is ‘high’ or ‘very high’. This means that there is risk associated with investing in them. Therefore, take any decision keeping in mind your risk taking ability.
(Disclaimer: The purpose of this article is only to provide information about the scheme and not to recommend investment. The past returns of the index or any mutual fund scheme cannot be considered as a guarantee of future performance. Any investment decision is taken based on SEBI approved Do this only after taking advice from an investment advisor.)
