LIC Mutual Fund Introduces Multi Asset Allocation Fund

LIC Mutual Fund has filed draft papers with SEBI to launch its new offering, the LIC MF Multi-Asset Allocation Fund. This open-ended scheme is designed to provide capital appreciation by investing in a balanced mix of equity, debt, and gold assets.

Features of the Fund

• Asset Allocation: The scheme allocates 65-80% to equity, 10-25% to debt, and 10-25% to Gold ETFs, ensuring diversification across asset classes. There’s also a provision to include up to 10% in Silver ETFs and REITs/InvITs for additional diversification.
• Benchmark: Its performance will be measured against a composite benchmark: 65% Nifty 500 TRI, 25% Nifty Composite Debt Index, and 10% Price of Domestic Gold.
• Risk and Return: The scheme is positioned as a high-risk, high-reward investment, catering to investors that are focusing on long-term financial growth.

Investment Plans & Entry Points

The fund offers a Regular Plan (via distributors) and a Direct Plan (direct subscriptions). The minimum investment is Rs.5,000, with SIP options starting as low as Rs.100/day. Investors can opt for growth or income distribution options, based on their financial goals.

The fund aims to actively rebalance its portfolio based on market conditions. Its equity investments will be across market caps, while the debt component will focus on high quality fixed income securities. The gold allocation serves as a hedge against inflation and market volatility.

Charges & Liquidity

The exit load policy includes no charges for redeeming up to 12% of units within three months, but a 1% load applies beyond that. The fund promises redemption proceeds within three working days, guaranteeing liquidity for investors.

Conclusion: The LIC MF Multi-Asset Allocation Fund seems like  a versatile product for investors seeking diversification across equity, debt, and gold. While the scheme offers good growth potential, investors should evaluate their risk tolerance and financial objectives before committing.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.