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It has been decided to change certain features of the LIC MF Floating Rate Fund. LIC Mutual Fund has decided to offer the option of daily dividend to the investors under LIC MF Floating Rate Fund. In order to get you the advantage of lower Dividend Distribution Tax, the scheme will be converted into a Debt Fund from liquid fund category w.e.f. 20/07/2009. Dividend distribution tax will be charged @14.16250%/22.6600% as is applicable under debt fund scheme. No holiday NAV will be declared from 20th July, onwards and cut-off timings for purchase/redemption will be as that of debt schemes .
In order to help you to understand and encourage you to take part in the new option offered, the key features of LIC Floating Rate Fund - STP are given below . We are enclosing the Statement of Account of your holding in Floating Rate fund alongwith the switch option slip tear off which you may execute and submit at any of our Area Offices/Business Centres/Karvy Centres.
The key features of the Scheme are as under:
Name ; LIC Mutual Floating Rate - STP
Opening Date of New Option : 20th July 2009
Closing Date of New Option : 20th July, 2009
Type/ Category : Open Ended Debt Scheme.
Investment Objective : To generate consistent returns by investing mainly in floating rate instruments fixed rate instruments/fixed rate instruments swapped for floating rate return so as to minimize the interest rate risk for the investor.
- Money Market Instruments 65 - 100%
- Debt Instruments : 0 - 35
Benchmark Index : CRISIL Liquid Index.
Options: (a) Dividend : Daily (payable weekly), Weekly
(b) Growth Plan
Minimum Investment : Minimum Rs.5,000/- under each option
and in multiples of Rs. 500/- thereafter
NAV: NAV/ Repurchase / Sale price will be announced on a daily basis except on Saturdays / Sundays / Public Holidays and during book closure period. Units will be allotted at the applicable NAV.
Entry Load and Exit Load : NIL
SIP /SWP/STP/AWOCA available.
Nomination Facility : Available to Sole / Joint Individual Unit holders
Registrar : M/s. Karvy Computer Shares P. Ltd.