Chennai, Sep. 2024
LIC Mutual Fund, one of the oldest fund houses in India, has launched LIC MF Manufacturing Fund, an open-ended equity scheme following manufacturing theme.
The NFO of the Scheme has opened for subscription from today i.e. 20th September 2024 and shall remain open till 4th October 2024. The units under the Scheme would be allotted on 11th October 2024. The Scheme will be managed by Mr. Yogesh Patil and Mr. Mahesh Bendre. The Scheme will be benchmarked to Nifty India Manufacturing Index (Total Return Index).
The investment objective of the Scheme is to achieve long-term capital appreciation by predominantly investing in equity and equity-related instruments of companies following manufacturing theme. There is no assurance that the investment objective of the Scheme will be achieved. During the NFO the minimum amount for application /switch in shall be Rs. 5,000/- and in multiples of Re.1 thereafter.
The Scheme aims to provide a diversified portfolio of Companies that which comes under the ambit of manufacturing theme, including but not limited to automobiles, pharmaceuticals, chemicals, heavy engineering products, metals, shipbuilding, and petroleum products etc.
Commenting on the New Fund Offer, Mr. R K Jha, Managing Director & Chief Executive Officer, LIC Mutual Fund, said: “India’s robust GDP growth, rapid urbanization, the growing middle-class population, the government’s export incentives and policy initiatives like Production Linked Incentive scheme and ‘Make-in-India’ are driving demand for manufactured goods. Consequently, the country is largely being developed as a manufacturing hub for the world. Further, manufacturing has a major role to play in making India a $5-trillion economy by 2027. As a result, the investors in the manufacturing theme may benefit from the current positive outlook for the constituent sectors.”
Mr. Yogesh Patil, Chief Investment Officer -Equity, LIC Mutual Fund, said “Over the past two decades, India’s Gross Value Added from the manufacturing sector has grown at a slower pace, with economic growth largely driven by consumption and services. However, this is expected to change, as government reforms aim to position India’s manufacturing as a key engine of economic growth. Initiatives such as ‘Make in India’, ‘Atmanirbhar Bharat’ and the Production Linked Incentive schemes, combined with global supply chain shifts is leading towards India through ‘China +1’ and ‘Europe +1’ opportunities. These efforts are anticipated to unlock potential across allied sectors, driving comprehensive economic growth and position India as a global manufacturing hub.”