LIC 'Multicap' mutual fund to open on October 6: Know key details before investing

The minimum Redemption amount will be Rs 500 or account balance whichever is lower.

LIC Mutual Fund has announced that it will launch 'LICMF Multicap Fund' or 'LICMF Multicap' on October 6. The New Fund Offer (NFO) will close on October 20, 2022. Thus, the NFO will be open for 15 days. After this, the scheme will reopen for ongoing subscription on November 2, 2022.

LICMF Multicap Fund is an open-ended equity investment tool and it's proceeds will be invested across all market capitalization segments. According to reports, the LICMF Multicap Fund will invest 25 per cent each in large, mid and small-cap stocks and the remaining 25 per cent will be invested across market capitalization at the discretion of the fund manager. 

The company said that LICMF Multicap Fund's focus on Large, Mid and Small-cap funds will offer a disciplined diversification.

Minimum subscription amount for each plan i.e. Direct Plan and Regular Plan in all options/sub-options: Rs 5,000 and in multiple of Re 1 thereafter.

Additional Investment: Rs 500 and in multiple of Re 1 thereafter.  The minimum Redemption amount will be Rs 500 or account balance whichever is lower.

Switch during NFO: In case of investors opting to switch into the Scheme from existing Schemes of LIC Mutual Fund (Subject to completion of the lock-in period, if any) during the New Fund Offer period, the minimum amount is Rs 5,000/-and in multiple of Re 1/-thereafter.

There is no minimum amount requirement, in case of investors opting to switch “all units” from any existing schemes of LIC Mutual Fund to this Scheme. During the NFO period (Switch request will be accepted up to 3.00 p.m. until the last day of the NFO and the switch in will be processed on the allotment date of the NFO. 

LICMF Multicap Fund would drive its investment strategy from its in-house developed Macro Based Valuation Check (MVC) thus adjusting the allocation of stocks in line with the evolving macro variables.

First-tier benchmark: NIFTY 500 Multicap 50:25:25 TRI

Liquidity: Units may be purchased or redeemed at NAV related prices, subject to applicable Loads (if any), on every Business Day on an ongoing basis, commencing not later than 5 (five) Business Days from the date of allotment. 

Redemption: The Mutual Fund will dispatch Redemption proceeds within 10 Business Days from the date of acceptance of Redemption request.