LIC Nomura Mutual Fund Launches LIC Nomura MF Dual Advantage Fixed Term Plan – Series 1

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Key highlights:

  • A close ended income scheme

  • NFO opens: Monday, June 22, 2015

  • NFO closes: Monday, July 06, 2015

  • Risk carried: Medium risk (Yellow)

  • Plan available: Regular and Direct

  • Entry and Exit load: NIL

  • Payout option: Growth and Dividend payout

  • Benchmark- CRISIL MIP Blended Index

  • Minimum Application amount: INR 5, 000/- and in multiples of INR 1/- thereafter

  • Investment strategy will be model portfolio based. It will be sector neutral weights compared to benchmark and monthly re-balancing.

LIC Nomura Mutual Fund, today, has launched LIC Nomura MF Dual Advantage Fixed Term Plan – Series 1 closed ended hybrid fund with a maturity of 42 months. This scheme combines the benefits of different asset classes like equity and debt. The scheme will invest minimum 65% in debt and a maximum of 35% in equity. The New Fund Offer (NFO) will open today, Monday, June 22, 2015 for subscription and will close on Monday, July 06, 2015.

The scheme’s objective is to offer returns to investors and seek capital appreciation by investing in a mixed portfolio of debt, equity and money market securities. The scheme aims at investing a portion of the portfolio in equity & equity related securities to achieve capital appreciation. With regards to investments in debt and money market securities, this scheme will invest only in securities which mature on or before the date of maturity of the schemes.

Mr. Kunal Jain (Debt) and Mr. Sachin Relekar (Equity) are the fund managers of the scheme.

Speaking on the launch, Mr. Nilesh Sathe, Director & Chief Executive Officer, LIC Nomura MF saidThe fixed income will always perform when interest rates are softening and the economy is trying to achieve its desired GDP growth rate so with this combination, the fixed income market will perform. With regards to the equity market, we are very positive from medium term and long term perspective. Reforms initiated by the government will have long term impact. We expect returns to track overall earnings growth (which is expected to be about 15%). Stock picking opportunities are high and that is a key to outperformance. In near term; monsoons, inflation trajectory and pace of improvement in capex cycle will determine the direction of the market. This is the right time to invest in a dual advantage fund as the real rate of interest is about 250 bps, so there is ample scope for RBI to cut rates in the coming quarters”.

About LIC Nomura Mutual Fund:

LIC Nomura Mutual Fund Asset Management Co. Ltd is a joint venture between LIC of India and Nomura Asset Management Company Ltd, Japan’s leading specialist Asset Management Company.

LIC Nomura Mutual Fund Asset Management Co. Ltd holds one of the widest networks of offices across the country. The company manages a comprehensive range of schemes to cater to the varying investment needs of its investors.


Risk factors: Mutual funds investments are subject to market risks, read all scheme related documents carefully.

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