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Dhansamriddhi

Dhansamriddhi, the close-end equity fund of LIC Mutual Fund has been rolled over into an open-end fu

Dhansamriddhi, the close-end equity fund of LIC Mutual Fund has been rolled over into an open-end fund from September 1, 1999. The fund was launched in an overheated market, which fizzled soon after the funds launch. The fund has been only on a decline since its launch to hit its lowest NAV in October '98 at Rs 3.60. The fund took much longer to revamp its illiquid portfolio. The present portfolio of the fund is well-diversified across growth and value stocks and fully liquid. However, the long inaction of the fund in restructuring its illiquid equity portfolio raises doubt about the fund's competence to manage an equity fund, as this has left investors out of pocket on its redemption. The fund after its open ending provides exit without any load at NAV. Besides, Dhansamridhi investors can switch their depleted investment to Dhanvikas (1) a relatively better performing equity fund or LIC Bond Fund, an open-end income fund.