LIC MF Floating Rate Fund –STP Introduction of Daily Dividend & shift to Debt Fund category

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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.

Asset Allocation:

  • 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.

Exit Option: In terms of SEBI (Mutual Fund) Regulations 1996, unit holders of the LIC Mutual Fund Floating Rate Scheme are hereby given an option to redeem the units at the prevailing Net Asset Value without any exit load, if the approved changes as above are not agreeable to you. The effective date of launch of the new dividend option is 20th July, 2009. Those investors who are continuing in the scheme may exercise the option to switch to daily dividend option, if they desire. Units under new option will open for subscription from on 20th July, 2009. The book closure period for the new option will be on 21st July, 2009. Daily dividend option will be opened for sales and repurchase w.e.f 22nd July, 2009.
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