LIC Nomura Mutual Fund
The Life Insurance Corporation of India (LIC) is the largest life insurance provider in India. LIC also provides mutual funds through a subsidiary in collaboration with the Nomura Group of Japan. The company, previously known as LIC Mutual Fund, was incorporated in 1989 and went into a partnership with Nomura in 2011.
With an illustrious history of over 25 years of investing in mutual funds, the LIC Nomura Mutual Fund is currently among the top choices in the Indian mutual fund space. The company is presently headed by Shri Nilesh Sathe.
Mutual funds from LIC Nomura
LIC Nomura Mutual Fund offers funds under 7 categories namely debt, equity, ETF (exchange traded fund), liquid, interval, fixed maturity and hybrid. Funds are also offered in miscellaneous categories such as ULIS (unit-linked insurance scheme) and CPOF (capital protection oriented fund).
Types of funds
Debt funds: These are relatively risk-free funds that are invested primarily in government securities, which are highly reliable from a market perspective. There are 5 different debt instruments available from LIC Nomura MF.
Equity funds: These funds are typically invested in equities or stocks, thereby offering the opportunity for greater returns, though with risks involved as per market dynamics. LIC Nomura MF offers a total of 14 asset options to choose from.
ETF: Exchange-traded funds are similar to mutual funds in how they buy equities of different companies, with the difference being that ETFs are traded throughout the day, unlike mutual funds which are traded at end of day on the NAV (Net Asset Value) figures. The company offers one ETF namely LIC Nomura G-Sec Long Term Exchange Traded Fund.
Liquid funds: Primarily visualized as alternative to short term funds, liquid funds are a great option as they invest in low risk money markets and have almost no lock-in periods. LIC Nomura MF offers a liquid instrument namely LIC Nomura MF Liquid Fund.
Interval funds: These funds are designed to minimize the interest rate risks involved in mutual funds by investing in a bunch of fixed income securities that mature on or before actual maturity of product. The funds are available in 4 varieties namely Interval Fund Quarterly Plan (Series 1), Interval Fund Annual Fund, Interval Fund Monthly Plan and Interval Fund Quarterly Plan (Series 2).
Fixed maturity funds: This is another low-risk fixed income plan wherein funds are invested in debt instruments. LIC Nomura MF presently sells one type of fixed maturity plan.
Capital Protection Oriented funds: These funds invest in a mix of debt and equity instruments, with debt instruments generally accounting for 80% of the overall corpus. Such a scheme helps in keeping risks at bay, while providing exposure to equity instruments. There are five CPOF funds available from LIC Nomura MF namely LIC Nomura MF Capital Protection Oriented Fund (Series1, Series 2, Series 3, Series 4 and Series 5).
Unit Linked Insurance Scheme: This is an open ended scheme that provides long term capital gains in addition to a life cover, free accident insurance cover, and tax benefits under Section 80C of the Income Tax Act.
Why choose LIC Nomura Mutual Fund
- Subsidiary of one of the largest and most respected public-sector companies in India.
- Vast experience in the mutual funds sector.
- Robust network of branches located throughout the country.
- Tax benefits for particular products under various sections of the Income Tax Act including Sections 80C and 88.
- Well-established customer support.
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News about LIC Mutual Fund
LICs Nomura MF aims to raise Rs 100 crore
India's largest life insurance agency, LIC hopes to raise Rs 100 crore through its Nomura Mutual Fund plan. This close ended income-Dual Advantage fixed term scheme was recently launched, with September 24, 2015 set as the closing date for this fund.
The fund has a maturity period of 43 months and intends to invest in debt and equity, in a 65:35 ratio. The company hopes to offer weighted average returns in the range of 9.20 to 9.25% from this fund, which hopes to provide capital appreciation to investors by investing smartly in debt and money market securities.
10th September 2015