LIC Mutual Fund Launches Manufacturing Fund; NFO Open Until October 4
LIC Mutual Fund has introduced the ‘LIC MF Manufacturing Fund,’ an open-ended equity scheme focused on the manufacturing sector. The New Fund Offer (NFO) is currently open for subscription and will close on October 4, 2024. The allotment of units will take place on October 11, 2024.
Investment Objective and Focus
The primary goal of the LIC MF Manufacturing Fund is to achieve long-term capital growth by investing in equity and equity-related instruments of companies within the manufacturing sector. Key sectors targeted include automobiles, pharmaceuticals, chemicals, heavy engineering, metals, shipbuilding, and petroleum products.
India’s Manufacturing Growth Potential
India's expanding economy, rapid urbanisation, and government policies like the Production Linked Incentive (PLI) scheme, 'Make in India,' and 'Atmanirbhar Bharat' are positioning the country as a global manufacturing hub. In line with these trends, the LIC MF Manufacturing Fund aims to leverage the growth potential within the sector.
R K Jha, Managing Director & CEO of LIC Mutual Fund, highlighted the importance of manufacturing in driving India’s GDP growth. He stated, "Manufacturing will play a critical role in making India a $5-trillion economy by 2027. This fund seeks to benefit from the sector’s positive outlook."
Yogesh Patil, Chief Investment Officer (Equity) at LIC Mutual Fund, echoed similar sentiments, noting that government reforms and shifts in global supply chains are expected to propel significant growth in India’s manufacturing sector.
Fund Allocation Strategy
The LIC MF Manufacturing Fund's investment portfolio will be allocated as follows:
- 80%–100% in equity and equity-related instruments of manufacturing companies
- 0%–20% in equity-related instruments of other companies
- 0%–20% in debt securities and money market instruments
- 0%–10% in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs)
The fund will be benchmarked against the Nifty India Manufacturing Index (Total Return Index). Managed by Yogesh Patil and Mahesh Bendre, the fund aims to capture growth opportunities in India’s evolving manufacturing landscape.
