LIC Mutual Fund was established on 20 April 1989 by the Life Insurance Corporation of India (LIC), an insurance firm sponsored by the Government of India. LIC Mutual Fund Asset Management Ltd. is the fund manager of LIC Mutual Fund and the fund house offers 28 schemes in the categories of equity, debt, Exchange-Traded Funds (ETFs), hybrid, etc.
The LIC MF Bond Fund - Dividend is an open-ended debt scheme and makes investments in money market and debt securities. The dividend option of the scheme offers regular income to the investor along with capital appreciation.
Investment Objective
To produce attractive returns for investors through investments in securities whose Macaulay Duration of the portfolio is between 4 years and 7 years.
Key Features of the scheme
The LIC MF Bond Fund is ideal for investors who wish to receive income over a medium to long term and who prefer investing in debt and money market securities. The scheme displays the below given features:
|
Type of Fund |
An open-ended debt scheme |
|
Plans Available |
Regular and Direct Plan |
|
Options under each Plan |
The Dividend option has reinvestment and payout facility |
|
Risk |
Moderate |
|
Systematic Investment Plan |
Available |
|
Systematic Transfer Plan |
Not Available |
|
Systematic Withdrawal Plan |
Not Available |
Investment amount for LIC MF Bond Fund
|
Minimum Application Amount |
Rs.5,000 per application and in multiples of Re.1 thereafter |
|
Minimum Additional Investment |
Rs.500 and in multiples of Re.1 thereafter |
|
Minimum installment for Systematic Investment Plan (SIP) |
Monthly - Rs.1,000 and in multiples of Re.1 thereafter. Quarterly - Rs.3,000 and in multiples of Re.1 thereafter |
|
Minimum installment for Systematic Withdrawal Plan (SWP) |
Not Available |
|
Entry Load |
Not Applicable |
|
Exit Load |
1% exit load will apply if an investor redeems/switches units before 12 months from unit allotment date. No exit load will be charged thereafter. |
Asset Allocation for LIC MF Bond Fund
|
Instruments |
Indicative Allocation Percentage of total assets |
Risk Profile |
|
|
Minimum |
Maximum |
||
|
Debt securities |
60% |
100% |
Low to Medium |
|
Money market securities |
0% |
40% |
Low |
|
Units issued by REITs and InvIT |
0% |
10% |
Medium to High |
NAV Disclosure and Benchmark for LIC MF Bond Fund
The NAV of LIC MF Bond Fund is obtained by dividing the scheme’s net assets by the number of outstanding units on the date of valuation. The NAV will be calculated up to 4 decimal places and disclosed at the end of every business day. The NAV will be updated on the website of AMFI (www.amfiindia.com) and website of LIC Mutual Fund (www.licmf.com) by 9:00 p.m. every business day.
The NAV will also be sent to at least 2 newspapers for publication on every business day. The newspapers publishing the NAV will have a nationwide circulation.
Benchmark: CRISIL Composite Bond Fund Index
Fund Manager
Mr. Marzban Irani
The LIC MF Bond Fund is managed by Mr. Marzban Irani and he has been managing the scheme since 10 September 2016. Mr. Irani joined LIC Mutual Fund in 2016 and prior to that, he worked with DSP BlackRock Investment Managers, Tata Asset Management, Metlife India Insurance, etc. The other schemes managed by him include LIC MF Equity Hybrid Fund, LIC MF Deb Hybrid Fund, LIC MF Children’s Gift Fund, LIC MF G-Sec Long Term ETF, etc.
Why you should invest in LIC MF Bond Fund
- Professional management - The fund manager of the scheme, Mr. Marzban Irani has many years of experience in managing mutual fund investments. Therefore, investors can be sure that their investments will be handled efficiently to achieve optimal returns.
- Can invest low - With an investment of just Rs.1,000 a month through an SIP, investors have an opportunity to create wealth over a long term. Therefore, investors need not worry about having a huge sum to invest in mutual funds.
- Multiple investment options - The LIC MF Bond Fund comes in regular and direct plans wherein the direct plan will have a lower expense ratio than the regular plan. Also, investors can choose between growth and dividend options. The growth option will allow investors to enjoy capital gains at the end of the investment period while the dividend option will offer them a regular income.
- Liquidity - Investors of the LIC MF Bond Fund can redeem and purchase units at applicable NAVs on any business day hence, enjoying liquidity.
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GST rate of 18% applicable for all financial services effective July 1, 2017.
