The Hindu Business Line : LICMF plans 3 new funds

STRONGLY viewing the current volatility in the Indian stock markets as a temporary correction phase, Jeevan Bima Sahayog Asset Management Company Ltd, managers to LIC Mutual Fund, has lined up three new funds for the next quarter, two of them being equity funds.

Responding to queries of newspersons on the eve of announcing the launch of a new investment option - LICMF Floating Rate Fund - here on Monday, the LIC Mutual Fund Chief Executive Officer, Mr M.V. Suryanarayana, said the fund expects a bull run on the stock markets in the beginning of the new financial year.

"The fundamentals of the economy are very strong. The performance of the Indian corporates for the first three quarters of current fiscal has been commendable. There is no reason why the stock markets should not witness a bull run. We are of the view that the current bloodbath on the bourses is a temporary correction and that the markets would bounce back," the LIC-MF CEO said.

The fund expects to mobilise around Rs 400 crore in the IPO of the first two schemes and around Rs 300 crore through a dynamic fund.

While the equity funds are being planned to enable more exposure to the equity markets, the dynamic fund was aimed at allowing the fund manager to have the option of switching between debt and equity instruments, Mr Suryanarayana said.

Currently managing assets of over Rs 4,600 crore with 12 open-ended schemes and two close-ended schemes, LIC-MF expects to close the current financial year with assets of around Rs 5,500 crore. A major portion of this would come from corporates.

Stating that a number of corporate houses have already committed significant amounts for liquid fund and monthly investment plan, the LIC-MF CEO said the Fund was also expecting over Rs 100 crore from the IPO of the new investment option - LICMF Floating Rate Fund.

"This product is suitable for those investors who want to earn market-linked returns by minimising the interest rate fluctuation risk.

This product is also suitable for the investors who feel that interest rates will go up in the future. The investment objective of the scheme is to generate consistent return by investing mainly in a floating rate instruments/fixed rate instruments swapped for floating rate return so as to minimise the interest rate risk for the investor," Mr Suryanarayana said.