LIC Nomura MF plans to garner Rs 500 crore under its unit linked income schemes till March end.
LIC Nomura Mutual Fund today said that it has introduced certain additional features under its tax saving Unit Linked Insurance Scheme (ULIS). The scheme will now provide auto cover of Rs 15 lakh even if investors don’t pay additional premiums with a free accident cover up to 1 lakh. Under auto cover, the fund house will redeem the existing units of investors to pay for the insurance cover if investors fail to pay their installments until the fund value reaches Rs 5000.
The AMC has also waived exit load under this scheme.
“We, at LIC Nomura Mutual Fund have always worked towards adding value to our investors and feature enhancement of ULIS is one such step,” said Nilesh Sathe, Director & CEO, LIC Nomura Mutual Fund.
The scheme also offers a bonus of 7.5% for 10 year term and 10% for 15 years term and unlimited top up. This scheme currently manages Rs 141 crore. The fund house aims to rope in at least one lakh more new customers under this scheme and garner Rs 500 crore till March and an additional Rs 500 crore over the next three years.
The scheme provides tax benefits on investments up to Rs 1 lakh under Section 80 C of the Income Tax Act. The scheme invests a minimum of 65% in equity and a maximum of 35% in debt.
LIC Nomura Mutual Fund currently manages Rs 6882 crore. The fund house is also planning to convert its LIC Nomura Equity Fund into RGESS.
UTI Mutual Fund has a similar scheme
called UTI Unit Linked Insurance Plan which manages Rs 2351 crore.
