LIC Mutual Fund Bets on Manufacturing with New LIC MF Manufacturing Fund

LIC Mutual Fund has launched LIC MF Manufacturing Fund

It is an open ended equity scheme following manufacturing theme.

The Indian manufacturing sector is a crucial pillar of the country's economic growth. India has the capacity to export goods worth USD 1 trillion by 2030 and is on the road to becoming a major global manufacturing hub.

For investors, the manufacturing sector presents a promising avenue for long-term growth, supported by structural reforms and favourable macroeconomic conditions. The combination of policy support and expanding market size is drawing increased traction from institutional and retail investors alike.

[Read: India's Manufacturing Momentum: ICICI Pru Manufacturing Fund vs. Kotak Manufacture in India Fund]

The investment objective of the Scheme is to achieve long term capital appreciation by predominantly investing in equity and equity related instruments of companies following manufacturing theme. There is no assurance that the investment objective of the Scheme will be achieved.

Under normal circumstances, LIC MF Manufacturing Fund will hold an allocation of 80% to 100% in Equity and equity related instruments of companies following manufacturing theme, 0% to 20% in Equity and equity related instruments of other than above companies, 0% to 20% in Debt Securities and Money Market Instruments and 0% to 10% in Units issued by REITS and InVITs.

LIC MF Manufacturing Fund aims to achieve long term capital appreciation by predominantly investing in equity and equity related instruments of companies following manufacturing theme.

The Scheme will follow a top-down and bottom-up approach to stock-picking and choose companies that are engaged in manufacturing and allied activities. Following Companies would be a part of manufacturing theme:

• Companies that are engaged in manufacturing activities

• Companies that are well placed to substitute India’s imports by manufacturing locally

• Companies that may benefit from Government’s Make in India initiatives and Production Linked Incentive (PLI) scheme.

• Companies that export goods manufactured in India.

• Companies that enable manufacturing of new age technology solutions in India and abroad.

The Scheme will also review these investments from time to time and the fund manager may churn the portfolio to the extent considered beneficial to the investors.

LIC MF Manufacturing Fund is benchmarked against the Nifty India Manufacturing – TRI

LIC MF Manufacturing Fund will be managed by Mr Yogesh Patil and Mr Mahesh Bendre

LIC MF Manufacturing Fund is open for subscription from September 20, 2024 to October 04, 2024. The fund will reopen for continuous sale and repurchase on September 16, 2024.

The minimum subscription amount is Rs 5,000/- and in multiples of Re. 1 thereafter.

The fund offers Direct Plan and Regular Plan. Under each plan the fund offers Growth and Income Distribution cum Capital Withdrawal (IDCW) option.