LIC Mutual Fund launches Multi Asset Allocation Fund
LIC Mutual Fund, one of the reputed fund houses in India, is launching LIC MF Multi Asset Allocation Fund, an open-ended scheme investing in equity, debt and gold.
The New Fund Offer (NFO) will open on 24th January 2025 and close on 07th February 2025. The investment objective of the scheme is to generate long-term capital appreciation by investing in a diversified portfolio of equity and equity related instruments, debt and money market instruments and units of gold Exchange Traded Funds (ETFs).
The benchmark of the scheme is a combination of 65% Nifty 500 TRI + 25% Nifty Composite Debt Index + 10% price of domestic gold. Mr. Nikhil Rungta, Mr. Sumit Bhatnagar and Mr. Pratik Shroff will be the Fund managers of the Scheme. The scheme will reopen for continuous sale and repurchase on 18th February 2025.
Commenting on the NFO, Mr. R.K. Jha, Managing Director & Chief Executive Officer of LIC Mutual Fund Asset Management Ltd., said: “The Multi-Asset Allocation Funds are increasingly getting popular nowadays as it reduces the concentration risks and ensures better diversification of assets.
Hybrid mutual funds saw a 27% surge in assets under management in 2024, increasing from ₹6.90 lakh crore in January 2024 to ₹8.77 lakh crore in December 2024 according to data published by Association of Mutual Funds in India (AMFI). Notably, Multi-Asset Allocation Funds saw significant growth in the AUM under Hybrid category. Currently this reflects a clear investor inclination towards hybrid funds and our new fund is ideally suited to cater to their interests.”
Mr. Nikhil Rungta, Co – Chief Investment Officer -Equity, LIC Mutual Fund Asset Management Ltd., said: “A Multi-Asset Allocation Fund is a solution that combines the power of equities for growth with income generation from debt and the resilience of commodities.
It provides a balanced pathway to maximize opportunities during volatile times. Investors who wish to invest in all the 3 asset classes at once and need a product having relatively lower volatility than pure equity schemes may invest in this product. Clearly, the market’s long-term outlook is bullish, and the new fund is offering an opportunity for all the investors to ride on this wave.”
