Case Study Of LIC Mutual Funds

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The LIC Mutual Fund was set up by the LIC of India in June, 1989 with the objective of mobilizing savings of people especially from rural and semi-urban areas and improving their income ensuring at the same time safety, liquidity and security of their investments. The Fund continued to work towards realizing these objectives. The Assets under Management (AUM) of LIC Nomura MF AMC Ltd. stood at Rs. 6112.16 crores as on 31st March, 2013 with a market share of 0.86%. Mutual Fund Industry‟ AUM as on 31st March, 2013 stood at Rs. 711137.38 crore. The total number of investors as at 31st March, 2013 was 321491. During the year dividends were distributed under debt and debt oriented schemes. It is expected that the LIC Mutual Fund will accord a high priority in its marketing strategy to tap the vast potential of semiurban and rural areas where LIC has already a strong presence.
6.7.4 Investment Policy of LIC’s Mutual Funds The main objective is to discuss the investment policy as disclosed by the mutual fund offer documents and as reflected in the asset allocation at the end of the accounting year. This is
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For implementing a policy so evolved, a decision or a set of decisions will have to be taken which may be regarded as policy decisions. For instance, a mutual fund or an income oriented scheme may decide not to invest more than 30% of its funds in equity shares and for a growth scheme, not to invest more than 40% of its funds in debentures and bonds. In accordance with the investment objectives of the scheme, mutual funds may select and invest in various types of securities such as equity shares, fixed income securities and money market securities. The allocation of securities in each scheme depends upon the investments objective of the scheme, subject to stipulations laid down by SEBI

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