LIC Mutual Fund Launches Multi Asset Allocation Fund

LIC Mutual Fund, a leading fund house in India, has announced the launch of the LIC MF Multi Asset Allocation Fund. This open-ended scheme will invest in a diversified portfolio comprising equity, debt, and gold.

The New Fund Offer (NFO) is set to open on 24th January 2025 and will close on 7th February 2025. The scheme aims to generate long-term capital appreciation through investments in equity and equity-related instruments, debt and money market instruments, as well as units of gold Exchange Traded Funds (ETFs).

The scheme's benchmark is structured as a combination of 65% Nifty 500 TRI, 25% Nifty Composite Debt Index, and 10% domestic gold prices. The fund will be managed by Mr. Nikhil Rungta, Mr. Sumit Bhatnagar, and Mr. Pratik Shroff. Following the NFO period, the scheme will reopen for continuous sale and repurchase on 18th February 2025.

Commenting on the launch, Mr. R.K. Jha, Managing Director & Chief Executive Officer of LIC Mutual Fund Asset Management Ltd., said, "Multi-Asset Allocation Funds are gaining popularity as they help reduce concentration risks and ensure better diversification. Hybrid mutual funds witnessed a 27% surge in assets under management in 2024, growing from ₹6.90 lakh crore in January 2024 to ₹8.77 lakh crore in November 2024, as per data from the Association of Mutual Funds in India (AMFI). The growth of Multi-Asset Allocation Funds within the hybrid category indicates a strong investor inclination towards such diversified investment options."

Mr. Nikhil Rungta, Co-Chief Investment Officer (Equity) at LIC Mutual Fund Asset Management Ltd., emphasized the benefits of the fund, stating, "The Multi-Asset Allocation Fund offers a strategic mix of equities for growth, debt for income generation, and commodities for resilience. This balanced approach allows investors to navigate market volatility effectively. It is an ideal option for those seeking exposure to all three asset classes with relatively lower volatility compared to pure equity schemes. With a bullish long-term market outlook, this fund presents an excellent opportunity for investors."

The LIC MF Multi Asset Allocation Fund is expected to attract investors looking for a well-diversified investment solution that aligns with their financial goals.