LIC Mutual Fund has extended its family of debt funds with the launch of a Liquid Fund. The mutual's last offering was LIC Children's Fund launched in October 2001. Currently, LIC manages 6 open-end funds (3 equity & 3 debt) and 8 closed-end funds.
LIC Liquid Fund is initially open for subscription from March 11 to March 13, 2002. The fund will again open for continuous sale / purchase from March 18, 2002. It is a no-load fund and the initial issue expenses will be borne by the AMC. The minimum application amount is Rs 25,000 and in multiples of Rs 500 thereafter. The fund offers Growth and Dividend Re-investment plans. The fund will invest 80-100 per cent of the corpus in money market instruments and the balance in debt securities.
The fund is suitable for investors having short-term investment horizon of 1 to 3 months.