LIC Mutual Fund has launched a dynamically managed Multi Asset Allocation Fund that will invest in equity, debt and gold.
The New Fund Offer will close on February 7. The scheme aims to generate long-term capital appreciation by investing in a diversified portfolio of equity and equity related instruments, debt and money market instruments and units of gold Exchange Traded Funds (ETFs).
The benchmark of the scheme is a combination of 65 per cent of Nifty 500 TRI, 25 per cent of Nifty Composite Debt Index and 10 per cent price of domestic gold.
RK Jha, Managing Director and Chief Executive Officer, LIC Mutual Fund Asset Management, said the multi-asset allocation funds are increasingly getting popular as it reduces the concentration risks and ensures better diversification of assets.
Hybrid mutual funds saw a 27 per cent surge in assets under management at ₹8.77 lakh crore against ₹6.90 lakh crore in January 2024, according to the Association of Mutual Funds in India data.
Nikhil Rungta, Co-Chief Investment Officer (Equity), LIC Mutual Fund Asset Management, said the new fund offered is a solution that combines the power of equities for growth with income generation from debt and the resilience of commodities.
It provides a balanced pathway to maximize opportunities during volatile times, he added.