• NOVEMBER 16, 1999

LICMF debuts in gilts, Canbank plans conversion

LIC Mutual Fund (MF) announced plans to launch a gilt fund. Meanwhile, Canbank plans to convert two of its closed-ended schemes into open-ended schemes. This was reported by a leading financial daily.

LICMF's gilt fund, (maiden gilt offering) will remain open for subscription from November 15 to November 29 1999. It will reopen for purchase on December 10, 1999 at net asset value (NAV). The scheme will not have any entry/exit load. It will have two options - dividend and growth.

The gilt scheme will be ideal for investors (institutional and retail) with a risk-averse mentality. LICMF is confident of mobilising Rs 5 bn by end of FY2000.

LICMF plans to convert the Dhan Tax Saver 1997 into an open-ended scheme. It will be re-christened as LICMF Tax Plan. LICMF also plans to merge all its existing schemes launched as equity linked savings schemes (ELSS) into LICMF Tax Plan. In addition to Dhan Tax Saver 1997, there are three other such scheem ehhc have been launched after 1992 viz. LIC Dhan 88 (1), Dhan Tax Saver 95 and Dhan Tax Saver 96. Investors who wish to continue in the newly merged scheme will be allowed to roll over at NAV.

In an unrelated move, Canbank MF has also converted two of its closed-ended schemes, Canstock (Rs 85.3 m corpus) and Candouble (Rs 158.8 m), into open-ended ones.

The two schemes will have an investment objective of high-risk high-returns and will be investing mainly in fast growing sectors like infotech (IT) and telecom.

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