The Life Insurance Corporation Mutual Fund (LIC MF) recently launched a new fund offer (NFO) for multi-cap fund. The scheme opened for subscription on October 6, and will close on October 20.
The scheme’s fund manager will be Yogesh Patil and the benchmark index will be Nifty500 multi-cap 50:25:25 TRI.
The minimum application amount will be ₹5,000 and in multiples of Re 1, and additional purchase of ₹500 and in multiples of Re 1 thereafter.
Those who want to take the SIP route can invest a minimum of ₹1,000 per month or quarterly of ₹3,000.
Under normal circumstances, the asset allocation of multi cap fund will entail a maximum of 75 percent allocation to equity and equity-related instruments.
Out of this, 25 percent will be allocated each to large cap, mid cap and small cap. The remaining allocation will be distributed between debt securities and alternative assets in the maximum ratio of 25 percent and 10 percent, respectively.
Large cap companies are the top 100 companies by market cap, the mid cap companies comprise entities ranging between 101th to 250th by market cap. At the same time, small cap stocks comprise the companies that are ranked at 251st and below.
As per the risk-o-meter, the product bears a ‘very high risk’.
Exit load: There will no exit load if units are redeemed or switched out after completion of 12 months from the date of allotment of units. There will be 1 percent exit load if units are redeemed or switched out on or before completion of 12 months from the date of allotment of units.
| LIC Multi Cap Fund: Key facts to know | |
| NFO opened on | Oct 6 |
| NFO to close on | Oct 20 |
| Minimum investment: | ₹5,000 |
| Additional purchase | ₹500 |
| Minimum SIP | ₹1,000 monthly |
| Benchmark index: | Nifty500 multi-cap 50:25:25 TRI |
For exposure across market cap: The fund offer invites applications from investors who are looking for exposure across market capitalisation at all points in time, who want to participate in good businesses across market segments, who prefer disciplined investments approach over timing the market and those with investment horizon of three years or more.
The systematic investment plan will be available during the NFO. There are two plans i.e., regular and direct; and two options of growth and income distribution cum capital withdrawal (IDCW). The IDCW sub options are reinvestment of income distribution cum capital withdrawal and pay out of income distribution cum capital withdrawal.
