LICMF India Vision Fund is a three-year close ended scheme that will automatically convert into an open-ended scheme once this tenure has been completed.
The focus is on generating long-term appreciation by identifying growth sectors and investing in companies within these sectors. The emphasis will be on undervalued small- and mid-cap stocks. Investment in large-caps will be purely to take short-term advantage of the market momentum. The fund defines stocks with market capitalisation of less than Rs 250 crore as small-caps, between 250 and 750 crore as mid-caps and those above 750 crore as large-caps.
As long as it is a close-ended fund, there will be no entry load. There is no fixed exit load but the units will be redeemed after recovering the balance proportionate unamortised issue expenses.
Once it becomes an open-ended scheme, the entry load will be 2.25 per cent and the exit load nil. Ditto for a Systematic Investment Plan.
Unit cost during NFO: Rs 10
Type of fund: Close-ended equity
Options: Growth, Dividend payout, Dividend reinvestment
Minimum investment: Rs 2,000
Benchmark: BSE 200
Offer opened: November 23, 2006
Offer closes: December 22, 2006