LIC Mutual hopes to raise Rs 100 crore from new plan

LIC Mutual Fund (LICMF), which has about Rs 4,600 crore under management, expects to mop up close to Rs 100 crore with its new fund, LICMF Floating Rate Fund. LICMF also expects to launch two more funds in the first quarter of the next financial year.

M V Suryanarayana, chief executive, LIC Mutual Fund, said the new floating rate fund was for the investors who wanted to earn market-linked returns and minimise risks related to interest rate fluctuations.

"We expect strong retail interest to come through in this new fund and it is suitable for the investors who feel that the interest rates are slated to go up in the future," Suryanarayana said. LICMF has a 16 lakh-strong investor base with a healthy tilt towards the retail investor.

The floating rate fund is an open-ended income scheme with no assured returns.