Mumbai, Sep 20 (IANS): LIC Mutual Fund on Friday launched 'LIC MF Manufacturing Fund', an open-ended equity scheme "following a manufacturing theme".

This fund's objective is to achieve long-term capital appreciation by predominantly investing in equity and equity-related instruments of companies following manufacturing themes. There is no assurance that the investment objective of the Scheme will be achieved.

The NFO (new fund offering) of the scheme has opened for subscription from September 20 to October 4. The units under the Scheme will be allotted on October 11.

During the NFO, the minimum amount for application/switch shall be Rs 5,000 and in multiples of Re 1 thereafter.

This NFO is categorised under the 'very high risk' category. The scheme aims to provide a diversified portfolio of companies that come under the ambit of manufacturing theme, including but not limited to automobiles, pharmaceuticals, chemicals, heavy engineering products, metals, shipbuilding, and petroleum products etc.

R.K. Jha, Managing Director & Chief Executive Officer of LIC Mutual Fund said: "India’s robust GDP growth, rapid urbanisation, the growing middle-class population, the government’s export incentives and policy initiatives like PLI scheme and ‘Make-in-India’ are driving demand for manufactured goods. Consequently, the country is largely being developed as a manufacturing hub for the world."

"Manufacturing has a major role to play in making India a $5-trillion economy by 2027. As a result, the investors in the manufacturing theme may benefit from the current positive outlook for the constituent sectors," he added.

Yogesh Patil, Chief Investment Officer -Equity of LIC Mutual Fund said: "Initiatives such as 'Make in India’, 'Atmanirbhar Bharat' and the Production Linked Incentive schemes, combined with global supply chain shifts is leading towards India through 'China +1' and 'Europe +1' opportunities. These efforts are anticipated to unlock potential across allied sectors, driving comprehensive economic growth and position India as a global manufacturing hub."

LIC Mutual Fund is one of the oldest mutual funds in India, which is sponsored by LIC of India. LIC Mutual Fund presently offers 39 schemes covering debt, equity, hybrid, passive and solution-oriented schemes.