LIC Mutual Fund has recently introduced a dynamically managed Multi Asset Allocation Fund that will invest in equity, debt, and gold. The New Fund Offer is set to close on February 7. The main objective of the scheme is to achieve long-term capital appreciation by investing in a diverse portfolio of equity and equity-related instruments, debt and money market instruments, and units of gold Exchange Traded Funds (ETFs).
The benchmark for this scheme comprises 65 per cent of Nifty 500 TRI, 25 per cent of Nifty Composite Debt Index, and 10 per cent of the domestic gold price. RK Jha, the Managing Director and Chief Executive Officer of LIC Mutual Fund Asset Management, stated that multi-asset allocation funds are gaining popularity as they help reduce concentration risks and ensure better asset diversification.
According to data from the Association of Mutual Funds in India, hybrid mutual funds have seen a 27 per cent increase in assets under management, reaching ₹8.77 lakh crore in comparison to ₹6.90 lakh crore in January 2024. Nikhil Rungta, the Co-Chief Investment Officer (Equity) at LIC Mutual Fund Asset Management, mentioned that the new fund offers a solution that combines the growth potential of equities with income generation from debt and the stability of commodities. This approach provides a balanced pathway to maximize opportunities during volatile market conditions.