LIC Infrastrucure Fund

Joining the bandwagon of AMCs, LIC has also launched a launched a mutual fund that will target investments in the infrastructure fund. It is not surprising to see everyone getting into this bandwagon with a a hope to garner as much investment as possible for this sector given the fact that the Indian GDP growth cannot be achieved if Infrastructure does not perform.

This mutual fund joins the long list of similar finds launched by JM Mutual, Kotak, UTI, AIG and HDFC in the recent past with similar themes.

It is a 36 month close ended equity fund. Upon completion of 36 months, the scheme will automatically be converted into an open ended scheme. Units outstanding under the scheme on the completion of 36 months will automatically continue under the open ended scheme.

The investment objective of the scheme is to provide long term growth from a portfolio of equity / equity related instruments of companies engaged either directly or indirectly in the infrastructure sector.

The fund proposes to invest between 70% and 100% per cent of the fund proceeds into Indian equities related to infrastructure and infrastructure related companies. It has an option to invest upto a maximum of 35% in Debt Securities and Money Market Instruments and Fixed Income Derivative.

Scheme Details
Issue Opens: January 31, 2008
Issue Closes: February 29, 2008
Type: Closed-end, equity scheme with automatic conversion to an open ended fund after 3 years
Plan : Dividend Option,Growth Option. Dividend Option (with Payout Facility only).
Minimum Investment: Rs. 5,000 and in multiples of 1 thereafter
Entry Load: Nil
Exit Load: Units will be redeemed only after recovering the balance unamortised expenses.
Liquidity :Investors can repurchase their investments once in a week during close-ended period and on all business days after the scheme becomes open-ended.