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LIC MF Launches Floater MIP

LIC Mutual Fund has introduced a new scheme called the Floater MIP. The IPO period for the fund launch is from 21st September to 8th October, 2004. The fund will be available under two plans – Plan A (investing at least 80 per cent in Floating rate instruments and the remainder in Equity) and Plan B (investing at least 90 per cent in Floating Rate Instruments and the remainder in Equity).

The minimum subscription amount would vary according to the option the investor chooses. There are 4 available options – Monthly Option (min. subscription amt. of Rs 25,000), Quarterly Option (min. subscription amt. of Rs 15,000), Yearly Option (min. subscription amt. of Rs 10,000) and a Growth Option (min. subscription amt. of Rs 5,000).

The scheme is the first of its kind. Due to debt market volatility, fixed income MIPs have come under tremendous pressure to generate stable returns. With the debt component comprising of floating rate instruments the volatility aspect will be taken care of. The equity component will try to further enhance the returns.