LIC MF Multi Asset Allocation Fund Open for Subscription : Subscription has started in the New Fund Offer (NFO) of LIC Mutual Fund, LIC Multi Asset Allocation Fund from today i.e. 24 January 2025. This NFO will remain open for public subscription till 7 February 2025. If you want to invest lump sum then you can apply with a minimum of Rs 5000 and after that you can invest any amount in multiples of Re 1. At least Rs 200 will be required for monthly SIP. Through this fund, investors can achieve a strong and diversified portfolio of equity, debt and gold.
SIP King: This mutual fund scheme made one time investment of Rs 1 lakh to Rs 4 crore, proved to be the king in SIP
Fund’s investment strategy
The fund will maintain allocation across key asset classes – equity, debt and gold. The fund manager will have the option to adjust the allocation based on current market conditions, risk management requirements and optimize returns. The fund manager will also have the option to use hedging/arbitrage strategies to reduce and manage the risk.
The allocation among Equity, Debt, Gold ETFs will be managed as per the asset allocation pattern mentioned. The fund will adopt a tactical asset allocation approach, which adjusts the risk in each asset class based on current economic and market conditions to suit the asset allocation pattern.
The equity portion will invest across all 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 options. Will balance tenure and credit risk to optimize returns in different interest rate environments.
The scheme can also invest in silver ETFs and units of REITs and InvITs as per the asset allocation pattern.
Corporate FD: 8 to 9% interest is being given on company FD, but before investing, understand the rating and risk factor.
minimum investment amount
Lump SUm: If you want to invest lump sum then you can apply with a minimum of Rs 5000 and after that you can invest any amount in multiples of Re 1.
SIP Amount: Minimum of Rs 100 for daily SIP and any amount in multiples of Re 1 thereafter. Minimum of Rs 200 for monthly SIP and any amount thereafter in multiples of Re 1. Minimum of Rs 1000 for quarterly SIP and any amount in multiples of Re 1 thereafter.
NPS: You can get 1 lakh pension even after investing in NPS for 20 years, but till what age is it best to join the scheme?
How much to invest in which option?
Equity and equity related options: Minimum 65 percent and maximum 80 percent
Debt and money market options: 10 percent to 25 percent
In units of Gold ETFs: 10 percent to 25 percent
Units of Silver ETFs: 0 percent to 10 percent
In REITs & InvITs: 0 percent to 10 percent
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 Managers: Nikhil Rungta, Prateek Harish Shroff, Sumit Bhatnagar
High Return: 5 toppers of midcap mutual funds, investors’ money increased 3 to 4 times in 5 years, returns up to 39% on SIP
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.)
