LIC Nomura Mutual Fund launches Midcap Fund

Mumbai, February 2, 2015: LIC Nomura Mutual Fund, today, launched its LIC Nomura MF Mid Cap Fund which is an Open Ended Equity Fund. The New Fund Offer (NFO) opens for subscription on February 02, 2015 and closes on February 16, 2015. 

The scheme offers return to investors with an objective of long term capital appreciation by investing substantially in portfolio of equity and equity linked instruments of midcap companies. 

Asset Allocation
Instruments	Indicative allocations (% of Net assets)		Risk Profile
	Minimum	Maximum	High/ Medium/ Low
Equity & Equity related instruments of mid cap companies	65	100	Medium to High
Debt & Money market instruments. (including investments in securitized debt#)	0	35	Medium to High
#Investment in Securitized Debt- upto 10% of the net assets of the scheme.

Minimum application amount for Dividend and Growth option is Rs. 5000 and thereafter in multiple of Re. 1 on fresh purchase.

Under this scheme, the minimum balance to be maintained by the investor in the Scheme is Rs. 1000. Other than market related activities, in the event of a redemption/ switch- out/ STP/ SWP, if the redemption amount falls below he required level i.e. Rs.1000 and the unit holder does not cover amount of redemption request, then the Mutual Fund will be authorized to redeem all the units in the folio and send the redemption proceeds to the unit holder.

Product Specification:

• Entry load: Nil

• Exit Load: 

a. 2% if redeemed or switched out on or before completion of 18 months from the date of allotments of units.

b. 1% if redeemed or switched out on or after 18 months and on or before 24 months from the date of allotments of units.

c. Nil if redeemed or switched out after completion of 24 months from the date of allotment of units.

• Plans available:

1. Direct and Regular Plan

a. Options available: Dividend Payout Facility

b. Dividend Re-investment Facility

2. Growth Option

• Special Facilities Available during NFO: Systematic Investment Pan (SIP)

Nobutaka Kitajima, Chief Investment Officer- Equity is the fund managers for this scheme co- managed by Sachin Relekar, Assistant General Manager.

Speaking on the launch, Nilesh Sathe, Director  & Chief Executive Officer, LIC Nomura MF said “Through this scheme we aim to establish a long-term connect with investors. This product is ideal for investors looking for appreciation through long term investment and at a risk quotient. This product is another step in our effort towards serving specific needs of the investors and helping them strengthens their portfolio”.

The investment objective of the scheme is to generate long term capital appreciation by investing mainly in equity and equity related instruments of mid- cap companies. The scheme may also invest a certain portion of its corpus in debt and money securities. 

The Investment Manager will invest only in those money market instruments that are related investment grade by a domestic credit rating agency authorized to carry out such activity, such as CRISIL, ICRA, CARE, etc. which the Investment Manager believes to be equivalent quality.

The benchmark index for the fund is CNX Midcap Index.