He New Fund Offering (NFO) is open for subscription until October 4, 2024. Units will be allocated on October 11, 2024.
Objective and theme of investment
The LIC MF Manufacturing Fund aims to achieve long-term capital appreciation by investing in equity and equity-related instruments of companies operating within the manufacturing sector.
The fund will focus on sectors such as automotive, pharmaceutical, chemical, heavy engineering, metals, shipbuilding and petroleum products, among others.
India’s manufacturing potential
India’s rapidly growing economy, urbanisation and government initiatives are driving demand for manufactured goods. The production-linked incentive (PLI) scheme and programmes such as ‘Make in India’ and ‘Atmanirbhar Bharat’ are positioning India as a global manufacturing hub.
In this context, the LIC MF Manufacturing Fund seeks to capitalize on these growth opportunities.
Management
The scheme will be managed by Yogesh Patil and Mahesh Bendre.
RK Jha, Managing Director & CEO of LIC Mutual Fund, “India’s GDP growth, rising middle-class population and export incentives are driving demand for manufactured goods. The manufacturing industry will play a pivotal role in turning India into a $5 trillion economy by 2027. This fund aims to leverage the positive outlook for the manufacturing sector.”
Yogesh Patil, chief investment officer (equities) at LIC Mutual Fund, said India’s manufacturing sector is expected to grow significantly, driven by government reforms and changes in the global supply chain.
“With initiatives like ‘Make in India’ and ‘Atmanirbhar Bharat’, we hope that India’s manufacturing sector will become a key driver of economic growth,” Patil said.
Funding allocation strategy
The LIC MF Manufacturing Fund will have the following portfolio allocation:
- 80%–100% in shares and equity-related instruments of manufacturing companies.
- 0%–20% in equity and equity-related instruments of other companies.
- 0%–20% in debt securities and money market instruments.
- 0%–10% in REITs and InvITs.
The fund is benchmarked to the Nifty India Manufacturing Index (Total Return Index).
Should you invest?
Investors seeking long-term capital appreciation with a focus on India’s growing manufacturing sector may find the LIC MF Manufacturing Fund an attractive opportunity.
However, as with any investment, it is essential to assess your risk tolerance and investment objectives before subscribing.
First published: September 20, 2024 2:02 PM IS
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