LIC Mutual Fund has come out with a three-year close ended equity fund- LIC Top 100 Fund. The scheme aims to provide long term capital appreciation from a portfolio of equity and equity related instruments primarily drawn from the companies which are a part of CNX 100 Index. However, the weightage contributed towards each of the company in the portfolio may not be same as the company's weightage to the CNX 100 Index.
This fund would automatically be converted into an open ended fund after the expiry of three years. Although there is no entry or exit load during the new fund offer period, the fund may charge initial issue expenses upto a maximum of 6 per cent of the amount mobilised to the scheme, which will be amortised over the three-year tenure of the fund.
Issue Opens: November 15, 2007
Issue Closes: December 14, 2007
Type: Close-end, equity fund
Benchmark Index: CNX 100 Index
Minimum Investment: Rs 5,000
Cost: Initial issue expenses, not exceeding 6 per cent of the corpus collected, would be amortized on a daily basis over the three-year close-ended tenure of the scheme
About the Fund Manager
Ms. B. Mahapatra is the designated fund manager for the scheme. She has been with LIC of India for 11 years but in different roles. Ms. Mahapatra has been managing four schemes in LIC Mutual since January 2004- LICMF MIP (Hybrid: Monthly Income), LICMF Children's Fund (Hybrid: Debt Oriented), LICMF Balance Fund (Hybrid: Equity Oriented) and LICMF India Vision (Equity: Diversified).
Performance History: LIC AMC
LIC Mutual Fund was incorporated in the year 1989. Currently it has assets worth Rs 13,937 crore under management. The fund house's 9 equity fund offerings contribute over Rs 932 crore to its total assets under management. However, their performance record is not too encouraging. Out of its six rated equity funds, three are rated 1-star, one is rated 2-star, while LICMF Sensex Advantage and LICMF Index Sensex have a 3-star rating.
The fund house lacks a good performance record for its actively managed equity funds. Hence, investors should avoid investing in this latest equity fund of LIC Mutual Fund.