LIC Nomura Mutual Fund plans to raise about Rs 200 crore through its new open-ended exchange traded fund.
The new fund offer — LIC Nomura MF Exchange Traded Fund Sensex — which was launched on November 9, will close on November 23.
The move comes after the fund house launched LIC Nomura MF Exchange Traded Fund based on CNX Nifty earlier this month.
The investment objective of the new scheme is to provide returns that closely correspond to the total returns of the securities as represented by the S&P BSE Sensex by holding the blue-chip stocks in same proportion.
The company is aiming to garner about Rs 200 crore through the new scheme.
“It is Rajiv Gandhi Equity Savings Scheme Qualified Scheme…ETFs are the most important development for investors and the fund industry. Investors looking for a long-term and defensive investment strategy in equities should invest in ETFs as it offers an alternative to index-based funds at much lower cost with an ability to trade on the exchange,” LIC Nomura MF CEO Sarojini Dikhale said in a statement.
LIC Nomura MF is a joint venture between LIC of India and Japan’s Nomura Asset Management Company.