LIC Nomura Mutual Fund re-launches ULIS with more features

MUMBAI: LIC Nomura Mutual Fund has re-launched its open ended Unit-Linked Insurance Scheme (ULIS) today with additional features aiming at Rs 500 crore assets under management (AUM) by the end of FY13, with one lakh new investors.

"ULIS has a good track record since 23 years. With additional features, we expect the fund to have Rs 500 crore AUM, with one lakh new investors," LIC Nomura Mutual Fund CEO Nilesh Sathe told reporters today.

The asset management company has tied up with 14 banks to sell this scheme, he said.

At present, ULIS has Rs 140 crore AUM, he said, adding that in three years, it plans to have Rs 1,000 crore AUM for the scheme.

The scheme's additional features include free accident cover up to Rs 1 lakh, guaranteed maturity bonus of 2.5 per cent to 10 per cent of target amount, no exit load as well as auto cover option, besides low-cost life insurance.

Fund allocation is balanced with 65 to 80 per cent invested in equity and 20 to 35 per cent in debt, he said.

The fund, which has three-year lock-in period, allows partial withdrawal subject to minimum balance requirement and top-up facility.

Investment in ULIS as well as its dividend is tax free.