LIC Mutual Fund Govt Securities Fund - Regular Plan - Dividend Option is ideal for investors who seek to generate capital growth in the long term along with current income by investing in sovereign securities that are issued by the Central or State Government of India. While this scheme carries a moderate risk factor, it offers tax benefits to the investors based on the income generated. This scheme has 2 plans - Regular Plan and Direct Plan. Under both the plans, this fund offers 3 investment options - Growth, Dividend, and PF. The Dividend Option can further be subdivided into 2 categories - Dividend Payout and Dividend Reinvestment.
Investment Objective of LIC Mutual Fund Govt Securities Fund - Regular Plan - Dividend Option
The main objective of this mutual fund is to generate risk-free capital appreciation in addition to reasonable returns for the unitholders by investing in sovereign securities that are issued by the Central and/or State Government of India. This scheme also invests in any security that is unconditionally guaranteed by the Central or State Government for the repayment of the principal and interest amounts along with reverse repos in such securities as and when permitted by the Reserve Bank of India (RBI). Please note that this scheme does not offer any assurance that this investment objective of the plan will be realised and the investor will earn assured returns.
Key Features of LIC Mutual Fund Govt Securities Fund - Regular Plan - Dividend Option
Some of the significant features of LIC Mutual Fund Govt Securities Fund - Regular Plan - Dividend Option are as indicated in the table below:
|Type of fund||An open-ended debt scheme that invests in government securities across maturity|
|Options under each plan||
|Systematic Investment Plan||Available|
|Systematic Transfer Plan||Available|
|Systematic Withdrawal Plan||Available|
Investment Amount for LIC Mutual Fund Govt Securities Fund - Regular Plan - Dividend Option
Check out the table mentioned below in order to learn about the applicable charges of this scheme:
|Minimum application amount||Rs.10,000 and subsequently in multiples of Re.1|
|Minimum additional investment||Rs.500 and subsequently in multiples of Re.1|
|Minimum installment for Systematic Investment Plan (SIP)||
|Minimum installment for Systematic Withdrawal Plan (SWP)||Rs.500 on a monthly and quarterly basis|
|Entry Load||Not applicable|
Asset Allocation for LIC Mutual Fund Govt Securities Fund - Regular Plan - Dividend Option
|Instruments||Allocations (Percentage of total assets)||Risk Profile|
|Government securities instruments||80% to 100%||Moderate|
|Debt and money market instruments including government securities and securitised debt for all schemes||0% to 20%||Low to medium|
NAV Disclosure and Benchmark for LIC Mutual Fund Govt Securities Fund - Regular Plan - Dividend Option
NAV - The redemption and switch-out of units under this scheme should be done based on the Net Asset Value (NAV) of the units on that particular business day. The asset management company (AMC) should calculate the NAVs by the end of all working days and publish them in a minimum of 2 daily newspapers with circulation across India. The AMC should also update the NAVs on its official website at www.licmf.com and on the website of the Association of Mutual Funds in India (AMFI) at www.amfiindia.com by 9:00 p.m. of each business day. The AMC should also disclose the portfolio of the fund within 1 month starting from the end of each half-year. This can be done either by sending a complete statement to the unitholders of the scheme, by displaying on the official website of the AMC, or by publishing in 1 national English daily newspaper in addition to 1 newspaper in the regional language of the area where the head office of the AMC is located.
Benchmark Index - The benchmark followed by LIC Mutual Fund Govt Securities Fund - Regular Plan - Dividend Option is I-Sec Composite Index.
LIC Mutual Fund Govt Securities Fund - Regular Plan - Dividend Option Fund Manager
The fund manager of LIC Mutual Fund Govt Securities Fund - Regular Plan - Dividend Option is Mr. Marzban Irani who has been providing his expert guidance to the investors since 10 August 2016. With approximately 18 years of experience under his belt, he employs his extensive knowledge and expertise about the mutual fund space to help unitholders of this scheme to make the right choices in order to achieve their investment goals as per their risk-taking capacities.
Why You Should Invest in LIC Mutual Fund Govt Securities Fund - Regular Plan - Dividend Option
- This scheme not only generates risk-free credit but also offers regular returns to the investors by predominantly investing in State or Central Government securities.
- The unitholders of this mutual fund will be able to benefit from the flexibility to switch to any other scheme or option offered by the LIC Mutual Fund.
- The income generated from this investment plan is exempt from tax under Section 10b(33) of the Income Tax Act, 1961. Furthermore, this scheme also offers capital gains tax benefits under Sections 48 and 112 of the Income Tax Act, 1961.
- Investors planning to redeem or switch out their units after the completion of 30 days starting from the date of allotment of units will not be charged any exit load.
- SIP, STP, and SWP facilities are available for the convenience of the unitholders.
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