Upcoming NFO: LIC Mutual Fund Filed Draft with SEBI for Technology-Themed Fund

LIC Mutual Fund has filed a draft Scheme Information Document for the LIC Mutual Fund Technology Fund with the securities regulator.  

The proposed scheme is an open-ended equity fund categorised as a thematic fund. It is designed to invest in technology and technology-related companies. 

Scheme Objective 

As per the draft document, the scheme aims to generate long-term capital appreciation. It plans to do this by investing mainly in equity and equity-related instruments of companies linked to technology and digital services. The document states that there is no assurance that the investment objective will be achieved. 

Asset Allocation Plan 

Under normal market conditions, the fund will allocate between 80% and 100% of its assets to equity and equity-related instruments of technology and technology-related companies.  

Up to 20% of the portfolio may be invested in equities outside the core technology theme. Exposure to debt and money market instruments is capped at 20% of net assets.  

Investment in units of Infrastructure Investment Trusts is limited to 10% of the portfolio. The scheme does not permit investments in overseas securities, ADRs or GDRs. 

Investment Universe and Benchmark 

The draft outlines that the scheme may invest across segments such as IT services, software, internet-based businesses, digital infrastructure, telecom services, data centres, and related areas.  

Performance of the scheme will be benchmarked against the BSE TECk Total Return Index, which includes technology, media, and telecommunications companies drawn from the BSE 500 universe. 

Structure and Liquidity 

The fund will be open-ended and will not be listed on any stock exchange. Units can be purchased or redeemed on business days at net asset value-based prices, subject to applicable exit loads.  

Under normal circumstances, redemption proceeds are proposed to be paid within three working days from the date of a valid request. 

Plans and Minimum Investment 

The scheme will offer both Direct and Regular plans. Each plan will have Growth and Income Distribution cum Capital Withdrawal options.  

The minimum application amount during the New Fund Offer (NFO) and on an ongoing basis is ₹1,000. Additional purchases will be allowed from ₹500 onwards. Systematic Investment Plans will be available across daily, monthly, and quarterly frequencies. 

Read More: Upcoming NFO: SBI Mutual Fund Launches SBI Quality Fund! 

Conclusion 

The New Fund Offer price is proposed at ₹10 per unit. Final dates, expense ratios and portfolio disclosures will be made available after the allotment of units, as outlined in the draft document. 

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.