An Open Ended Dynamic Asset Allocation Fund
Regular Plan & Direct Plan (The Regular and Direct plan will be having a common portfolio)
Income Distribution cum Capital Withdrawal (IDCW)
IDCW Sub Options are:
1. Reinvestment of Income Distribution cum Capital Withdrawal.
2. Payout of Income Distribution cum Capital Withdrawal.
LIC MF Hybrid Composite 50 : 50 Index
Mr. Yogesh Patil (Equity portion).
Mr. Rahul Singh (Debt portion).
Lumpsum Investment: ₹5,000 & multiples of ₹1 thereafter.
Additional Purchase: ₹500 and multiples of ₹1 thereafter.
SIP: Daily ₹300, Monthly ₹1,000 & Quarterly ₹3,000.
Systematic Investment Plan (SIP) and Switch In facility would be available during NFO.
Switch request will be accepted upto 3.00 p.m. on the last day of the NFO.
The investment objective of the scheme is to provide capital appreciation/ income to the investor from a dynamic mix of equity, debt and money market instruments. The Scheme seeks to reduce the volatility by diversifying the assets across equity, debt and money market instruments. However, there is no assurance or guarantee that the investment objective of the Scheme will be realized.
The Fund will allocate money to equity and fixed income asset classes based on the percentage allocation suggested by internal model developed by LIC Mutual Fund. Internal Model is a unique model derives the equity asset allocation after taking into account valuation ratios such as PE, P/BV, Mcap to GDP and prevailing interest rate (Like 10 year Gsec, Reverse repo). The model is designed to reduce the human bias and manages asset allocation across equity and debt in different market phases. The key attribute of the model is as below:
Entry Load : Nil
In accordance with SEBI Circular No. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009, no entry load will be charged on purchase /additional purchase / switch-in/ SIP/ STP transactions.
Exit Load :
|Instruments||Indicative allocation (% of total assets)||Risk Profile|
|Minimum||Maximum||High / Medium / Low|
|Equities and Equity related instruments||0||100||High|
|Debt and Money market instruments (including Triparty Repo)||0||100||Low to Medium|
|Units issued by REITs & InvITs||0||10||Medium to High|
For more Details on Asset Allocation, Kindly refer SID (Scheme Information Document).
The corpus of the Scheme shall be invested in any (but not exclusively) of the following securities:
Deciding the asset allocation – We input various parameters such as interest rate, future earnings yield and price to earnings ratio in our model. The model output is the net equity exposure, basis on which we calculate the mix between net equity exposure, arbitrage and debt.
Stock / security selection – We select stocks based on our internal research and investment framework. The portfolio is constructed keeping in mind the investment objective of the fund.
Rebalance of Asset allocation – We rebalance the asset allocation based on the model output.
Rebalance of portfolio – The stock selection is on the discretion of the Fund manager. Fund Manager looks into various aspects of business environments including valuations and other parameter while rebalancing the portfolio with an objective of optimizing the returns.