NFO Alert: LIC Mutual Fund launches Manufacturing Fund

LIC Mutual Fund has launched LIC MF Manufacturing Fund, an open-ended equity scheme following manufacturing themes.

The new fund offer or NFO of the scheme is open for subscription and will close on October 4. The units under the scheme would be allotted on October 11.

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The Scheme will be managed by Yogesh Patil and Mahesh Bendre. The Scheme will be benchmarked to the Nifty India Manufacturing Index (Total Return Index).

The investment objective of the scheme is to achieve long-term capital appreciation by predominantly investing in equity and equity-related instruments of companies following manufacturing themes.

The minimum amount for application /switch in shall be Rs 5,000 and in multiples of Re 1 thereafter.

The scheme aims to provide a diversified portfolio of companies that comes under the ambit of manufacturing theme, including but not limited to automobiles, pharmaceuticals, chemicals, heavy engineering products, metals, shipbuilding, and petroleum products etc.

“India’s robust GDP growth, rapid urbanization, the growing middle-class population, the government’s export incentives and policy initiatives like Production Linked Incentive scheme and ‘Make-in-India’ are driving demand for manufactured goods. Consequently, the country is largely being developed as a manufacturing hub for the world. Further, manufacturing has a major role to play in making India a $5-trillion economy by 2027. As a result, the investors in the manufacturing theme may benefit from the current positive outlook for the constituent sectors,” said R K Jha, Managing Director and Chief Executive Officer, LIC Mutual Fund.

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The scheme is suitable for investors who are seeking capital appreciation over the long term and want investment predominantly in equity and equity related instruments of companies following manufacturing themes.

“Over the past two decades, India's Gross Value Added from the manufacturing sector has grown at a slower pace, with economic growth largely driven by consumption and services. However, this is expected to change, as government reforms aim to position India’s manufacturing as a key engine of economic growth. Initiatives such as 'Make in India’, 'Atmanirbhar Bharat' and the Production Linked Incentive schemes, combined with global supply chain shifts are leading towards India through 'China +1' and 'Europe +1' opportunities. These efforts are anticipated to unlock potential across allied sectors, driving comprehensive economic growth and position India as a global manufacturing hub,” said Yogesh Patil, Chief Investment Officer -Equity, LIC Mutual Fund.