LIC Nomura Mutual Fund Launches LIC Nomura MF Dual Advantage Fixed Term Plan - Series 2

Key highlights:

• A close ended income scheme

• NFO opens: Thursday, September 10, 2015

• NFO closes: Thursday, September 24, 2015

• Plan available: Direct plan and Regular plan

• Entry and Exit load: NIL

• Option : Dividend payout & Growth

• Benchmark- CRISIL MIP Blended Index

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

LIC Nomura Mutual Fund plans to launch its closed ended income scheme- LIC Nomura MF Dual Advantage Fixed Term Plan - Series 2, tomorrow. The new fund offers open on Thursday, September 09, 2015 and closes on Thursday, September 24, 2015. It comes with a maturity of 43 months and combines the benefits of different asset classes like debt and equity.

The scheme will invest minimum 65% in debt and a maximum of 35% in equity (most of the time). The investment philosophy is to endeavor returns by investing into debt and money market securities and provide capital appreciation by investing into equity and equity related instruments. The scheme will invest into fixed income securities with a view to hold till maturity and the investors will not be exposed to duration risk.

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

Speaking on the launch, Ms. Sarojini Dikhale, Director & Chief Executive Officer, LIC Nomura MF said “The fixed income will always outperform when interest rates are softening and the economy is trying to achieve its desired GDP growth rate .With regards to the equity market, we are very positive from medium term and long term perspective. Reforms initiated by the government will have a 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 keep doing better. This is the right time to invest in the 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. In near term; monsoons, inflation trajectory and pace of improvement in capex cycle will determine the direction of the market.

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.

Disclaimer:

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