LIC Mutual Fund has launched its new scheme, the LIC MF Multi Asset Allocation Fund, aiming to offer investors a diversified investment option across equity, debt, and gold. The open-ended fund will be available for subscription through a New Fund Offer (NFO) from January 24 to February 7, 2025.
The primary objective of the scheme is to generate long-term capital appreciation by investing in a mix of equity and equity-related instruments, debt and money market instruments, and units of gold Exchange Traded Funds (ETFs). The benchmark for the scheme combines 65% Nifty 500 TRI, 25% Nifty Composite Debt Index, and 10% domestic gold prices. The fund will reopen for continuous sale and repurchase on February 18, 2025.
Mr. R.K. Jha, MD & CEO of LIC Mutual Fund Asset Management Ltd., highlighted the growing popularity of multi-asset allocation funds, which provide better diversification and reduce concentration risks. The hybrid mutual fund category saw a significant 27% surge in assets under management (AUM) in 2024, indicating investor interest in such products. Guwahati has shown increasing awareness of hybrid funds, with many investors seeking safer and diversified options in the current volatile market. This trend is expected to align well with the launch of LIC’s new fund, which offers balanced exposure to equities, debt, and gold.