LIC Nomura Mutual Fund launches First G-Sec Long Term ETF in Asia

Mumbai, December 17, 2014: LIC Nomura Mutual Fund today announced the launch of LIC Nomura MF G-Sec Long Term ETF, an open ended, index linked exchange traded fund. The product is designed keeping in mind the investors who are seeking medium to long term income and to generate comparable return subject to tracking error.

The New Fund Offer (NFO) will open for subscription on 17 December, 2014 and will close on 22 December, 2014. The units will be available at par (Rs.10/-) during the NFO and at NAV related prices thereafter. The investment objective of the scheme is to provide returns that closely correspond to the total returns of securities as represented by GSEC10 NSE Index, subject to tracking error.

The product provides buying and selling flexibility, tax efficiency, transparency, a hedging tool for interest rate futures. The fund will invest in securities comprising of underlying benchmark Index, of minimum 95% and maximum 100% and other debt and money market instruments to maximum 5%.Thus making the risk profile low.

Speaking on the occasion, Nilesh Sathe, Director & Chief Executive Officer, LIC Nomura Mutual Fund said “We are happy to announce the launch of the first of its kind structured product- G-Sec Long Term ETF. It’s a unique product which will help HNIs and retail investors to participate in GSEC Market at lower cost”.

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