LIC Nomura Mutual Fund has launched a closed ended income scheme- LIC Nomura MF Dual Advantage Fixed Term Plan - Series 2. The new fund offer has opened today, and will close on September 24, 2015. It comes with a maturity of 43 months and combines the benefits of different asset classes like debt and equity, as stated in the press release issued by the company.
The scheme will invest minimum 65% in debt and a maximum of 35% in equity. The investment philosophy is to endeavor returns by investing into debt and money market securities and provide capital appreciation by investing into equity and equity related instruments.
Kunal Jain (Debt) and Mr. Sachin Relekar (Equity) are the fund managers of the scheme.
Sarojini Dikhale, Director & CEO, LIC Nomura MF said, “The fixed income will always outperform when interest rates are softening and the economy is trying to achieve its desired GDP growth rate .With regards to the equity market, we are very positive from medium term and long term perspective. Reforms initiated by the government will have a long term impact.”
“We expect returns to track overall earnings growth (which is expected to be about 15%). Stock picking opportunities are high and that is a key to keep doing better. This is the right time to invest in the fund as the real rate of interest is about 250 bps, so there is ample scope for RBI to cut rates in the coming quarters. In near term; monsoons, inflation trajectory and pace of improvement in capex cycle will determine the direction of the market,” she further adds.