LIC MF offers exit opportunity to unit holders

28-Jul-2010

LIC Mutual Fund today offered an exit opportunity to its unit holders after the fund house's deal with Japan's Nomura Asset Management earlier this month.

"The unit holders may note that if they wish to redeem their investments with the Fund, the option to exit without any exit load can be exercised...," LIC MF said in a public notice. An exit load is the commission that an investor has to pay while selling off the mutual funds. This comission is charged by the fund to take care of their running expenses.

Earlier this month, Nomura Asset Management entered into an agreement with LIC MF to acquire a 35 per cent stake in it. In the new joint venture called LIC Nomura Mutual Fund, LIC, LIC Housing Finance and Nomura will hold 45 per cent, 20 per cent and 35 per cent stake respectively. "LIC will continue to be the sole sponsor of the fund," it said, adding that the fund exit option will not to applicable to unit-holders for LIC MF Tax Plan and LIC MF Unit Linked Insurance Scheme.

There are 39-fund houses in the country that currently manages assets worth Rs 6.76 lakh crore. LIC MF is the country's seventh largest asset management company, that handled assets worth over Rs 32,000 crore at end-June. India's largest life insurer Life Insurance Corporation of India (LIC) had set up the LIC MF in 1989.

Source : www.insuremagic.com