LIC MF Launches New FMP

LIC Mutual Fund has launched another fixed maturity plan (FMP) with following details.

Name of Fund: LIC Mutual Fund Fixed Maturity Plan Series 34

Scheme: Close ended Income Scheme

Plans: It will mature after 16 months, which is called 16 months plan.

Objective: The scheme aims to minimize interest rate risk by investing in a portfolio of fixed income securities normally maturing in line with the time profile of the scheme.

Asset Allocation: Under 15 months plan the fund would invest up to 100% in debt instruments having residual maturity of more than 16 months. It can also invest up to 100% in money market instruments. Investment in debt instruments includes securitised debt up to 100%.

Fund Opens: 17 December 2007

Fund Closes: 24 December 2007

Face Value: Rs. 10

Investment Options: The scheme provides dividend and growth option. Under dividend option investors can choose either dividend reinvestment or dividend payout.

Minimum Investment Amount: The minimum investment is of Rs.10, 000 and in multiple of Rs. 1000 thereafter.

Entry Load: In case of close-ended scheme no entry load can be levied.

Exit Load: Exit load will be 1.50% if the investment is redeemed on or before 180 days. The exit load will come down to 1.00% if the investment is redeemed after 180 days but before maturity. No exit load will be charged upon maturity of the scheme.

The Minimum Target: The minimum target amount during the New Fund offer period is Rs. 50 lakh.