LIC Mutual Fund launches overnight fund
The new fund offer will be open for subscription on 15 July.
According to the press release, the primary investment objective of the scheme is to provide reasonable returns commensurate with low risk and providing a high level of liquidity, through investments made primarily in overnight securities having maturity/residual maturity of 1 business day. The fund will be managed by Rahul Singh.
The scheme offers two investment options-growth and dividend option. The dividend option has the following facilities: dividend re-investment facility (available for daily, weekly and periodic frequency) and dividend pay-out facility (available for periodic frequency).
The scheme would invest up to 100 per cent of assets in overnight securities or debt instruments maturing on or before the next business day with low risk profile.
The minimum application amount is Rs 5000 and in multiples of Rs 1 thereafter. The minimum additional purchase amount is Rs 500 and in multiple of Rs 1 thereafter.
According to the fund house, the fund seeks to collect a minimum subscription amount of Rs 20 crore under the scheme during the NFO period. There is no entry load and exit load in the scheme.