``The scheme had just been finalised and will soon be submitted to the Securities and Exchange Board of India (Sebi) for approval,'' said company sources. According to the proposed draft of the scheme, its main objective is `to generate a regular stream of income'. Intially, the scheme had proposed `no income distribution' as such, while the trustees could `declare a dividend at their discretion'. This was subsequently modified to include provisions for four options -- regular income option (for annual dividend), growth option), 54 EA option and 54 EB option.

Under the last two options, the fund hasproposed a higher income distribution to the investors. Explaining the reason, the fund states that the funds collected under these two options will be invested for a longer period leading to a higher income generation. Further, according to LICMF, the long term interest rates are higher as compared to the short and medium term rates. Significantly, the trustees are of the opinion that this will also `help in stopping the cross subsidisation among different options.'