The Hindu Business Line : LIC Mutual launches outsourcing fund

LIC Mutual Fund is launching an India Outsourcing Fund. This open-ended equity fund would invest in sectors that are providing good outsourcing opportunity and has good growth potential in the medium to long term, according to the offer document.

The fund would invest up to 100 per cent of its corpus in equity, but has the option of investing 15 per cent in debt and money market instruments.

The selection of stocks in the portfolio shall be done after carrying out an in-depth research of the company. The broad parameters of the research will be based on company's fundamentals such as last four to five year's financial performance, the promoters background, the company's payout policies and it's expansion plans. The selection of the stocks shall follow bottom up approach, says the offer document.

Investment will be done in sectors where the outlook is positive and demonstrates good growth potential in the long term. "Within the sectors also we shall look for the stocks with good fundamentals and having good growth potential. The proportion of investment in various securities will be decided after considering the prevailing political conditions, the economic environment (including interest rates and inflation), the performance of the corporate sector and general liquidity and other considerations in the economy and markets so as to have a liquid portfolio providing optimum returns," the offer document says.

The fund offers growth and dividend options. The minimum application amount is Rs 5,000 at Rs 10 per unit, during the initial public offer.