LIC Mutual Fund Filed Draft With SEBI for Consumption Fund

LIC Mutual Fund has submitted draft documents to the Securities and Exchange Board of India (SEBI) for the launch of the LIC MF Consumption Fund. The scheme is structured as an open-ended equity fund with a focus on companies linked to India’s consumption sector. The filing was made along with a due diligence certificate from the asset management company.

Investment Objective

The objective of the scheme is to generate long-term capital appreciation by investing primarily in equity and equity-related instruments of companies that benefit from domestic consumption. There is no guarantee that the stated objective will be achieved, as with any market-linked product.

Asset Allocation

The draft notes that 80-100% of the fund’s assets will be invested in equities of companies falling under the consumption theme. Up to 20% can be allocated to equities outside the theme or to debt and money market instruments. The scheme may also invest up to 10% in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).

Benchmark and Structure

The scheme will use the Nifty India Consumption Total Return Index (TRI) as its benchmark. This index includes companies from consumer goods, automobiles, telecom, pharmaceuticals, media, hospitality, and healthcare sectors. The fund will operate as an open-ended scheme, allowing investors to purchase or redeem units on business days at Net Asset Value (NAV) based prices.

Minimum Investment and Plans

During the New Fund Offer (NFO), investors can apply with a minimum of ₹5,000 and in multiples of ₹1 thereafter. Systematic Investment Plans (SIPs) are available starting at ₹100 daily, ₹200 monthly, and ₹1,000 quarterly. The scheme offers two plans: Regular (through distributors) and Direct (without distributors). Options include Growth and Income Distribution cum Capital Withdrawal (IDCW).

Exit Load and Pricing

An exit load of 1% applies if units are redeemed within 90 days of allotment, beyond 12% of the invested units. No exit load is charged after 90 days. The New Fund Offer price has been fixed at ₹10 per unit. Ongoing expenses will be capped at 2.25% of daily net assets, in line with SEBI’s regulatory limits.

Read More: Start Investing with ₹100 Per Day: LIC Mutual Fund’s Pocket SIP Explained!

Conclusion

The LIC MF Consumption Fund will provide exposure to companies expected to benefit from rising domestic demand. The scheme’s draft papers have been filed with SEBI, and the launch will follow regulatory clearance and announcement of NFO dates

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.