Category Archives: LIC Mutual Funds

Insurance Linked Scheme of LIC Nomura

LIC Nomura has re-launched its open-ended tax-saving scheme — Unit Linked Insurance Scheme — with additional benefits such as no exit load, free accident cover and maturity addition benefit of 2.5 to 10 per cent of target amount, among others.

“This is the right time to re-launch this product as investors would be looking at tax relief under section 80C,” said Nilesh Sathe, Director and CEO of LIC Nomura Mutual Fund.

The scheme will provide life insurance cover up to Rs 15 lakhs and free accident cover up to Rs 1 lakh. The auto cover facility will be available if the contribution for the target amount has not been received from the investor. In such a case, the premium will be paid from the existing units. However, the value of this investment cannot go below Rs 5,000.

The scheme has a lock-in period of three years. “The lock-in period helps in better management of the investments by the fund manager and thereby, higher returns. There is no comfort in management when the money is withdrawn by investors from time to time,” said Sathe.

About 20-35 per cent of the investment will be in debt instruments, while 65-80 per cent in equity instruments. The minimum amount for monthly SIP investment is Rs 100, half yearly SIP investment is Rs 500, and yearly investment is Rs 1000.

The scheme was originally launched in 1989 and has so far garnered assets worth Rs 140 crore.


LIC Nomura ULIS Mutual Fund: Additional Benefits and Features

LIC Nomura ULIS Mutual Fund 2013:  At present, ULIS has Rs 140 crore AUM, he said, adding that in three years, it plans to have Rs 1,000 crore AUM for the scheme

Additional Features of LIC ULIS 2013 Mutual Fund

  • The scheme’s additional features include free accident cover up to Rs 1 lakh, guaranteed maturity bonus of 2.5 per cent to 10 per cent of target amount, no exit load as well as auto cover option, besides low-cost life insurance.
  • Fund allocation is balanced with 65 to 80 per cent invested in equity and 20 to 35 per cent in debt, he said.
  • The fund, which has three-year lock-in period, allows partial withdrawal subject to minimum balance requirement and top-up facility.
  • Investment in ULIS as well as its dividend is tax free.