LIC Mutual Fund Launches New Manufacturing Fund, Targets Rs 60,000 Crore AUM

New Delhi, September 20, 2024: LIC Mutual Fund, one of India’s largest asset management companies, has launched a new open-ended equity scheme focused on the manufacturing sector. The Manufacturing Fund aims to capitalize on the growth potential of India’s manufacturing industry and is targeting an asset under management (AUM) of Rs 60,000 crore by the end of the fiscal year.

The new fund offer (NFO) for the Manufacturing Fund will be open for subscription from September 20 to October 4, 2024. Units under the scheme will be allotted on October 11, 2024. The scheme will be benchmarked against the Nifty India Manufacturing Index (Total Return Index).

The Manufacturing Fund seeks to provide investors with a diversified portfolio of companies operating in various manufacturing sectors, including automobiles, pharmaceuticals, chemicals, heavy engineering products, metals, shipbuilding, and petroleum products. The fund’s investment strategy will combine top-down and bottom-up approaches to identify promising stocks within the manufacturing theme.

Mr. [Jha], the fund manager for the Manufacturing Fund, highlighted the growth potential of sectors such as automobiles, auto components, pharmaceuticals, capital goods, and consumer goods. He emphasized that the fund will carefully select stocks based on both macroeconomic trends and individual company fundamentals.

To make the Manufacturing Fund accessible to a wide range of investors, LIC Mutual Fund has set low minimum investment requirements. Investors can start investing with a daily systematic investment plan (SIP) of Rs 300 or a monthly SIP of Rs 1,000. After the NFO closes, the minimum SIP amounts will be further reduced to Rs 100 daily and Rs 200 monthly, making the fund more affordable for small investors.

For lump sum investments, the minimum investment amount is Rs 5,000, with no upper limit for either SIP or lump sum investments. This flexibility allows investors to invest according to their financial goals and risk appetite.

The Manufacturing Fund aims to provide investors with an opportunity to participate in the growth of India’s manufacturing sector, which is a key driver of the country’s economy. With its focus on diversification and active management, the fund seeks to deliver long-term capital appreciation.