LIC Nomura Mutual Fund has launched a new fund named as LIC Nomura MF Fixed Maturity Plan - Series 63, a close ended income scheme with the duration of 386 days. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 29 May to 07 May 2013. The units of the scheme will be listed on National Stock Exchange of India, in order to provide liquidity.
The investment objective of the scheme is to minimize interest rate risk by investing in a portfolio of fixed income securities which mature on or before the date of the maturity of the scheme.
The scheme offers two options viz. growth and dividend payout option.
The scheme would allocate upto 50%-100% of assets in debt and 50% of the asset would be invested in Money Market instruments with low to medium risk profile. Debt includes securitized debt upto 50%.
95% 100% of net assets would be invested in A1 rated certificate of deposits and upto 5% would be invested in any other securities such as Government Securities / Treasury Bills / CBLO / Reverse Repos Repos (in G-Sec / T-Bill).
Entry and exit load charge will not be applicable for the scheme.
The minimum application amount is Rs 10000 and in multiple of Rs 1 thereafter.
The fund seeks to collect a minimum subscription (minimum target) amount of Rs 20 crore under the scheme during the NFO period.
Benchmark index for the scheme is CRISIL Short Term Bond Fund Index.
Y.D. Prasanna will be the fund manager for the scheme.