Chennai, Nov 9: LIC Mutual Fund (LICMF) has launched its dedicated open-end gilt fund -LICMF Government Securities Fund -- which will invest in state and central government securities. The scheme with a facevalue of Rs 10 will open for initial subscription from November 15 to 29.Speaking at a press conference, Madhav Rao, general manager, administration and marketing (Mumbai), said that the scheme is basically for provident funds and non-government gratuity and superannuation funds subject to the limits prescribed in lieu of investment in government securities directly.
It will be ideal for all categories of risk averse investors expecting reasonable returns including banks, corporates and other institutional investors.
Initially for the LICMF Government Securities Fund scheme, the internal target has been fixed at a minimum of Rs 20-25 crore. The highlights of the scheme include zero credit risk, no entry and exit load, tax free returns, instant liquidity and efficient single window decentralisedservice through various area offices.
Talking about the performance of the LICMF Bond Fund, he said that the fund has declared a maiden interim dividend of 4 per cent on October 21, 1999. The annualised yield under the scheme stood at 13.1 per cent based on NAV of Rs 10.65 as on November 6.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.