LIC Mutual Fund to launch LIC MF "MULTICAP FUND" Open for subscription from 06 Oct 2022. You need to know all about the Fund.

LIC Mutual Fund to launch its new fund offer LIC MF "MULTICAP FUND", which will open for Subscription from 06 Oct to 20 Oct.

According to the new SEBI guidelines, the multi-cap fund should have a minimum 25% investment in each market cap stock. The mutual fund house that has the multi-cap fund earlier has to follow the new guideline. They can convert the earlier multi-cap fund to the flexicap category and can launch a new fund offer for the multi-cap fund. Hence LIC Mutual Fund has to convert the earlier fund to the flexicap category and launch the new fund offering a multi-cap fund.

Multicap mutual fund has to invest at least 25% of its fund in each of the market cap stocks like large-cap, mid-cap, and small-cap. There will be no sector bias while selecting stocks for its portfolio. The remaining 25% investment will be decided by the fund manager where to invest depending upon the market condition.

According to LIC Mutual Fund, "LIC MF Multicap Fund" will launch on October 6. On October 20, 2022, the New Fund Offer (NFO) will come to an end. The NFO will therefore be available for 15 days. The plan will reopen for an ongoing subscription from Nov 2, 2022.

LIC MF Mulitcap Fund is an open-ended equity scheme that predominantly invests in equity and equity-related Instruments across the market capitalisation. 

The investment objective of the scheme is to generate long-term capital appreciation by investing in a diversified portfolio of equity and equity-related instruments like large-cap, mid-cap, and small-cap stocks. However, there is no assurance that the investment objective of the scheme will be realized

The minimum investment amount in this fund is Rs 5000 and in multiple of rupee one thereafter. And minimum SIP amount is Rs 1000 per month. 

The benchmark of this fund is Nifty 500 multicap 50:25:25 TRI. This fund will be managed by Mr. Yigesh Patil. Both regular and direct plans are available for investment. Customers can choose from the options available for growth and IDCW(income distribution cum withdrawal).

Also read:- How to select the best mutual fund scheme? 

The load structure of the scheme is nil If 12% of the scheme is redeemed or switched out within 12 months from the date of allotment of units. And 1% on remaining units redeemed or switched out within 12 months from the date of allotment. After the completion of 12 months, there will be no exit load.

 The asset allocation of the scheme would be like this, Up to 100% can be invested in equity, and equity-related schemes. 0 to 25% can be invested in debt securities and money market instruments and p to 10: can be invested in units issued by REITs and InvITs.

YouTube Link LICMF Multicap Fund

This fund is suitable for the investor who is looking for long-term capital appreciation, the horizon should be 3 years or above. This fund will be at very high risk as it invests in equity and equity-related instruments. 

Disclaimer - Please consult your financial advisor before investing.

Disclaimer - Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.