MUMBAI, March 3: Underterred by the tepid response to Dhanvarsha (11), LIC Mutual Fund is planning to add to the series with the launch of Dhanvarsha (12) in April this year. LIC MF's Dhanvarsha (11), which closed for subscription on February 20, managed to mop up only Rs 40 crore as against a target of Rs 150 crore. According to the CEO of Jeevan Bima Sahayog AMC Ltd, RG Sharma, Dhanvarsha (12) will open for subscription on April 1. Sharma said they have already received Sebi nod for launching the new scheme. Dhanvarsha (12) is being launched close to the redemption date of Dhanvarsha (4), which is March 21.The redemption corpus is around Rs 350 crore which includes the reinvested funds over a span of six years. Investors of this scheme will be given an option to switch over to Dhanvarsha (12) if they do not wish to redeem their investment. The scheme will be on the lines of Dhanvarsha (11), in the sense that it would be a close-ended regular income and growth scheme with assured returns. The assured rateof return has not been decided as yet. The fund will be targeting a corpus of between Rs 100 and Rs 200 crore, said Sharma.
However, since the scheme is slated for launch soon after the closure of the ICICI bond issue, which is expected to offer high returns, LIC officials appear to have quite a task in meeting their targeted mobilisation, said sources. The management at LIC AMC has decided not to come out with an assured rate of return for any of its schemes initially.
Instead, it has decided to announce the rate of return to be given to its investors on an yearly basis. The minimum rate of return payable monthly or yearly for each subsequent year is slated to be declared before the end of the preceding year.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
