LIC Mutual Fund announces the launch of LICMF Multicap Fund (“LICMF Multicap”), an open-ended equity scheme. LICMF Multicap Fund would invest a minimum of 25 per cent each in Large, Mid and Small Cap stocks, with a balance of 25 per cent.
The New Fund Offer (NFO) opens on Thursday, October 6, 2022, and would close on Thursday, October 20, 2022. The scheme would reopen for ongoing subscription from Wednesday, November 2, 2022.
The unique investment framework would calculate the adjusted market valuations by taking macro cues. It entails calculating lower-end and higher-end PE and arriving at an optimum portfolio-level PEG Band.
Speaking on the occasion, T S Ramakrishnan, MD&CEO of LIC Mutual Fund, said: “LICMF Multicap 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 LICMF Multicap Fund would be, a unique investment checklist which aims to identify emerging leaders across all Market Caps.”
Yogesh Patil, CIO-Equity, said, “LICMF Multicap Fund would adopt a robust Qualitative & Quantitative Framework for stock selection and market cap allocation. The key differentiation & value add would emanate from how, the framework would adjust the allocation in line with changing macro variables, to maintain a strict Valuation Discipline using our in-house framework of MVC (Macro Based Valuation Check).”
The first-tier benchmark for the LICMF Multicap Fund would be NIFTY 500 Multicap 50:25:25 TRI, which factors in all caps and thus offers more diversification and appropriate comparison for the scheme.
