LIC Nomura Mutual Fund has launched the LIC Nomura MF G-Sec Long Term ETF, an open ended, index linked exchange traded fund which offers tax free capital gains post three years.
The product is designed keeping in mind the investors who are seeking medium to long term income and to generate comparable return subject to tracking error.
The New Fund Offer (NFO) opened for subscription on 17 December, 2014 and closes on 22 December, 2014. The investment objective of the scheme is to provide returns that closely correspond to the total returns of securities as represented by GSEC10 NSE Index, subject to tracking error.
The product provides buying and selling flexibility, tax efficiency, transparency, a hedging tool for interest rate futures. The fund will invest in securities comprising of underlying benchmark Index, of minimum 95% and maximum 100% and other debt and money market instruments to maximum 5%.Thus making the risk profile low.
Speaking on the occasion, Mr. Nilesh Sathe, Director & Chief Executive Officer, LIC Nomura Mutual Fund, says: “We are happy to announce the launch of the first of its kind structured product- G-Sec Long Term ETF. It’s a unique product which will help HNIs and retail investors to participate in GSEC Market at lower cost”.