LIC Mutual to put out Sensex Advantage Plan

prashant · 06-24-2008, 03:11 PM

LIC Mutual Fund is set to offer a `Sensex Advantage Plan' in its index fund, the offer document for which has been sent to SEBI for vetting.

The plan is aimed at generating returns by investing in the constituents of the BSE Sensitive Index as well in as a cluster of non-index stocks. All this will be in line with the investment pattern outlined by the fund, subject to tracking errors.

The proposed scheme will also have the usual plans dedicated purely to the 30-share Sensex and the 50-share Nifty. As in other index funds, these will seek to generate returns commensurate with the performance of these benchmarks promoted respectively by the BSE and the NSE.

The Sensex planwill be passively managed to the extent of 90 per cent of its net assets. There will be an actively-managed component as well — 10-20 per cent will be set aside for stocks that are likely to provide good returns over a period of time.

To the extent specified in the asset allocation pattern of the plan, investments may be made in ADRs and GDRs of domestic companies listed on overseas stock exchanges. This, however, will be subject to necessary approvals. Investments might also be made in overseas securities with permission from the RBI and the SEBI.

For the non-Sensex component, the fund manager will need to identify stocks that have "a high probability of outperforming the Sensex," the offer document has stated.

Depending on market conditions and based on the fund manager's views, certain allocations may vary at times. Investment in money market instruments and cash (a maximum 10 per cent in all the three plans — Sensex, Nifty and Sensex Advantage) may then be allowed to move up to 20 per cent before a re-balancing exercise is initiated.

According to the offer document, units of face value of Rs 10 will be available for sale at NAV related prices. The scheme has no lock-in period and there will be no entry load at present though there is an exist load of 0.5 per cent for repurchases within one year from the date of investment.

A minimum investment of Rs 2,000 is required for subscription to the scheme with all additional investments to be made in multiples of Rs 500. There is no upper limit on investments, according to the offer document.

Also, the scheme offers the flexibility to switch among various other schemes and options offered by LIC Mutual Fund as per changing investment needs.

The document adds that the scheme may also use various derivatives and hedging products from time to time in keeping with SEBI regulations in order to protect the value of the portfolio.

praveen · 06-29-2008, 04:23 PM

Can some one tell me the best performing LIC MF..

or average % of returns ..

i feel LIC is not in the best 5 performers .. because of their risk taking nature..

06-24-2008, 03:11 PM	#1 (permalink)
prashant Status: Member Join Date: Jun 2008 Posts: 49	LIC Mutual to put out Sensex Advantage Plan LIC Mutual Fund is set to offer a `Sensex Advantage Plan' in its index fund, the offer document for which has been sent to SEBI for vetting. The plan is aimed at generating returns by investing in the constituents of the BSE Sensitive Index as well in as a cluster of non-index stocks. All this will be in line with the investment pattern outlined by the fund, subject to tracking errors. The proposed scheme will also have the usual plans dedicated purely to the 30-share Sensex and the 50-share Nifty. As in other index funds, these will seek to generate returns commensurate with the performance of these benchmarks promoted respectively by the BSE and the NSE. The Sensex planwill be passively managed to the extent of 90 per cent of its net assets. There will be an actively-managed component as well — 10-20 per cent will be set aside for stocks that are likely to provide good returns over a period of time. To the extent specified in the asset allocation pattern of the plan, investments may be made in ADRs and GDRs of domestic companies listed on overseas stock exchanges. This, however, will be subject to necessary approvals. Investments might also be made in overseas securities with permission from the RBI and the SEBI. For the non-Sensex component, the fund manager will need to identify stocks that have "a high probability of outperforming the Sensex," the offer document has stated. Depending on market conditions and based on the fund manager's views, certain allocations may vary at times. Investment in money market instruments and cash (a maximum 10 per cent in all the three plans — Sensex, Nifty and Sensex Advantage) may then be allowed to move up to 20 per cent before a re-balancing exercise is initiated. According to the offer document, units of face value of Rs 10 will be available for sale at NAV related prices. The scheme has no lock-in period and there will be no entry load at present though there is an exist load of 0.5 per cent for repurchases within one year from the date of investment. A minimum investment of Rs 2,000 is required for subscription to the scheme with all additional investments to be made in multiples of Rs 500. There is no upper limit on investments, according to the offer document. Also, the scheme offers the flexibility to switch among various other schemes and options offered by LIC Mutual Fund as per changing investment needs. The document adds that the scheme may also use various derivatives and hedging products from time to time in keeping with SEBI regulations in order to protect the value of the portfolio.

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06-29-2008, 04:23 PM	#2 (permalink)
praveen Status: Administrator Join Date: Feb 2008 Posts: 377	Can some one tell me the best performing LIC MF.. or average % of returns .. i feel LIC is not in the best 5 performers .. because of their risk taking nature..