LIC Mutual Fund Index Fund - Sensex - Dividend Option is an open-ended scheme that is ideal for investors who are looking for long-term capital appreciation through investments in equity instruments of stocks of companies that are represented by the S&P BSE Sensex index. While this plan carries a moderately high risk factor, it is a low-cost fund that offers tax benefits to the investors. Handled by an experienced fund manager, this scheme carries 2 investment plans - Regular and Direct. Under both these plans, there are 2 investment options, namely the Growth Option and the Dividend Option. The Dividend Option is further divided into 2 categories - Dividend Payout and Dividend Reinvestment.
Investment Objective of LIC Mutual Fund Index Fund - Sensex - Dividend Option
The primary objective of this mutual fund is to generate returns while replicating the performance of the S&P BSE Sensex Index based on the selected plan. While this scheme is subject to tracking errors, it invests in the stocks of the respective index. Please note that the asset management company (AMC) does not offer any guarantee that this scheme will meet the investment objective and provide assured returns to the unitholder.
Key Features of LIC Mutual Fund Index Fund - Sensex - Dividend Option
This scheme has several noteworthy characteristics that make it one of the best investment options available in the market. Some of the significant features of LIC Mutual Fund Index Fund - Sensex - Dividend Option are as indicated in the table below:
| Type of fund | An open-ended scheme that replicates the S&P BSE Sensex Index |
| Plans available |
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| Options under each plan | Growth Dividend Dividend Payout Dividend Reinvestment Please note that the default investment option under this scheme is the Growth Option. On the other hand, the default sub-option under the Dividend Option will be Dividend Reinvestment. |
| Risk | Moderately high |
| Systematic Investment Plan | Available |
| Systematic Transfer Plan | Available |
| Systematic Withdrawal Plan | Available |
Investment Amount for LIC Mutual Fund Index Fund - Sensex - Dividend Option
Learn about the various charges that are applicable to this plan by checking out the table mentioned below before you decide to make an investment:
| Minimum application amount | Rs.5,000 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) |
|
| Minimum installment for Systematic Withdrawal Plan (SWP) | Rs.500 on a monthly or quarterly basis |
| Entry Load | Not applicable |
| Exit Load |
|
Asset Allocation for LIC Mutual Fund Index Fund - Sensex - Dividend Option
| Instruments | Allocations (Percentage of total assets) | Risk Profile |
| Equity and equity futures in Sensex | 95% to 100% | High |
| Cash and money market instruments | 0% to 5% | Low |
Please note that the maximum amount of the net assets of this scheme that can be deployed in stock lending is 20%. Additionally, the amount of net assets of this scheme that can be deployed in stock lending to any single counterparty should not exceed 5%.
NAV Disclosure and Benchmark for LIC Mutual Fund Index Fund - Sensex - Dividend Option
NAV - The purchase, redemption, or switching of units under this investment plans is based on the Net Asset Value (NAV) of units at the specific time of the business day on which the application is time stamped. This NAV of units should be calculated by the AMC for each business day, and published in at least 2 daily newspapers with circulation across India. The AMC should also display the NAV at its official website at www.licmf.com along with the website of the Association of Mutual Funds in India (AMFI) at www.amfiindia.com by 9:00 p.m. of every working day.
The asset management company shall also disclose the portfolio of the investment plan within 1 month starting from the end of each half-year. This is done by either sending a complete statement to all the unitholders or by advertising in an English daily newspaper with nationwide circulation along with a newspaper in the regional language of the area where the head office of the AMC is located. The AMC should also publish the portfolio along with the annual report of the scheme on its official website.
Benchmark Index - The benchmark followed by LIC Mutual Fund Index Fund - Sensex - Dividend Option is S&P BSE SENSEX Index.
LIC Mutual Fund Index Fund - Sensex - Dividend Option Fund Manager
The fund manager for LIC Mutual Fund Index Fund - Sensex - Dividend Option is Mr. Saravana Kumar who has been offering his expert guidance to the investors since 17 April 2018 in order to help them make the right choice while keeping in mind their specific investment goals and risk-taking capacities. Owing to his prolonged career in the mutual funds space, Mr. Kumar has gained insights regarding the market while working for renowned institutions such as Tata-AIA Life Insurance Company Ltd., ICICI Bank Ltd., and Trust Investment Advisors Pvt. Ltd. He uses his extensive knowledge gathered from his experience to offer unitholders the right counsel regarding their investment.
Why You Should Invest in LIC Mutual Fund Index Fund - Sensex - Dividend Option
- This fund follows a passive investment method in line with the S&P BSE Sensex Index.
- This scheme requires less funds as opposed to other actively managed funds.
- This mutual fund is ideal for investors who are looking for capital growth over a long-term investment horizon of more than 3 years.
- Even though this plan is subject to tracking errors, it is ideal for those who want to invest in securities covered by the S&P BSE Sensex Index.
- If you have a moderately high risk-taking capacity, you can invest in this scheme.
- Investors who want to participate in the growth story of the country through passive investments in a diverse portfolio of renowned organisations that are represented by the S&P BSE Sensex should opt for this scheme.
- This mutual fund offers tax benefits to the unitholders under Section 10 (33) of the Income Tax Act, 1961. Investors can also avail capital gains tax benefits by opting for scheme under Sections 48 and 112 of the Income Tax Act, 1961.
- Investors are not charged any exit load if they switch out or redeem their units after the completion of 1 month starting from the date of allotment of units.
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