Listen to this article
LIC Mutual Fund has launched LICMF Multicap Fund, an open-ended equity scheme, which would invest across market capitalization.
The fund house will follow a model called Macro Based Valuation Check (MVC) that aims to adjust the allocation of stocks in line with the evolving macro variables like equity risk premium, interest rates and earnings growth.
In a press release, TS Ramakrishnan, MD & CEO of LIC Mutual Fund, said, “The fund would precisely offer investors prudent and disciplined diversification across market caps and an opportunity to invest in those companies which have leadership position across market caps. The uniqueness of the fund would be, a unique investment checklist which aim to identify emerging leaders across market caps.”
Talking about the framework, Yogesh Patil, CIO-Equity, said, “MVC framework is essential guardrail to avoid traps of overvaluation or bubbles without sacrificing the ability to participate in growth opportunities. MVC would actually add another layer of check for portfolio monitoring on a continual basis.”
