LIC Mutual Fund Tax Plan - Regular Plan - Dividend Option is an open-ended, equity-linked saving scheme that carries a lock-in period of 3 years. Earlier known as Dhan Tax Saver 1997 which was introduced on 1 January 1997 as a close-ended, equity-linked, tax-saving scheme with an investment horizon of 10 years, this scheme was changed to an open-ended one from 17 April 2000. With a moderately high risk factor, this mutual fund offers both the Regular Plan and the Direct Plan. Under each of these plans, the scheme offers 2 investment options - the Growth Option and the Dividend Payout Option. Investors can also opt for the SIP facility available under this plan as per their convenience.
Investment Objective of LIC Mutual Fund Tax Plan - Regular Plan - Dividend Option
The main objective of this scheme is to offer capital appreciation in addition to tax relief and tax rebate to the unitholders by investing in the stock markets. This mutual fund provides investors the opportunity to receive tax benefits under Section 80C of the Income Tax Act, 1961 by investing predominantly in a diverse portfolio containing equity and equity-related instruments of stocks from various companies. However, it should be noted that this scheme does not provide any assurance to the investors that the scheme objective will be realised and the unitholder will receive guaranteed returns.
Key Features of LIC Mutual Fund Tax Plan - Regular Plan - Dividend Option
Check out the table mentioned below to learn about some of the key aspects of LIC Mutual Fund Tax Plan - Regular Plan - Dividend Option:
|Type of fund||An open-ended, equity-linked saving scheme featuring a statutory lock-in period of 3 years that offers tax benefits|
|Options under each plan||
|Systematic Investment Plan||Available|
|Systematic Transfer Plan||Not available|
|Systematic Withdrawal Plan||Not available|
Investment Amount for LIC Mutual Fund Tax Plan - Regular Plan - Dividend Option
See the table below to learn about the various investment amounts associated with this scheme:
|Minimum application amount||Rs.500 and in multiples of Rs.500 thereafter|
|Minimum additional investment||Rs.500 and subsequently in multiples of Rs.500|
|Minimum installment for Systematic Investment Plan (SIP)||
|Entry Load||Not applicable|
|Exit Load||Nil (subject to a 3-year lock-in period)|
Asset Allocation for LIC Mutual Fund Tax Plan - Regular Plan - Dividend Option
|Instruments||Allocations (Percentage of total assets)||Risk Profile|
|Equity and equity-related instruments||80% to 100%||Medium to high|
|Debt and money market instruments, government securities, and cash||0% to 20%||Low to medium|
NAV Disclosure and Benchmark for LIC Mutual Fund Tax Plan - Regular Plan - Dividend Option
NAV - The asset management company (AMC) should calculate the Net Asset Value (NAV) of the units under this scheme for all working days. This is because the purchase, redemption, and switch-out of units under this scheme should be based on the applicable NAV of the concerned day. The AMC shall publish the NAVs in a minimum of 2 daily newspapers with circulation across India for all business days. The AMC must also update the NAV on its official website at www.licmf.com in addition to the website of the Association of Mutual Funds in India (AMFI) at www.amfiindia.com by 9:00 p.m. for each working day.
Additionally, the AMC shall also disclose the portfolio of the fund within 1 month starting from the close of every half-year. The AMC can do this by either publishing the portfolio in a newspaper in the regional language of the area wherein the head office of the AMC is situated along with a national English daily newspaper, or by sending an integrated statement to the unitholders.
Benchmark Index - The benchmark followed by LIC Mutual Fund Tax Plan - Regular Plan - Dividend Option is Nifty 500 Index.
LIC Mutual Fund Tax Plan - Regular Plan - Dividend Option Fund Manager
The fund manager of LIC Mutual Fund Tax Plan - Regular Plan - Dividend Option is Mr. Sachin Relekar who has been handling this scheme since 5 March 2015. Prior to joining LIC Mutual Fund Asset Management Company, Mr. Relekar has worked with several organisations such as Tech Pacific India Pvt. Limited, Innovision Consulting, and C D Equity Research Pvt. Ltd. With an experience of around 13 years, he offers his extensive knowledge to the investor in order to help them opt the right investment strategy based on their unique risk-taking capacities and specific investment goals.
Why You Should Invest in LIC Mutual Fund Tax Plan - Regular Plan - Dividend Option
- This scheme invests in the equity market to generate capital appreciation in the long run while offering tax benefits to the unitholder under Section 80C of the Income Tax Act, 1961.
- This mutual fund is ideal for investors looking to grow their capital over a long-term investment horizon.
- This investment plan is well-suited for candidates with a moderately high risk-taking capacity along with an investment horizon of at least 3 years.
- This scheme does not charge any exit load in case a unitholder is planning to redeem or switch-out his or her units.
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