LIC Mutual Fund Launches Auto Switch Option During NFO Period

LIC Mutual Fund Launches Auto Switch Option During NFO Period

LIC Mutual Fund has introduced a new auto switch facility for investors during the New Fund Offer (NFO) period of newly launched schemes. This feature is now available, as stated in a notice cum addendum dated September 12, 2024.

This facility is available for all new and existing investors of LIC Mutual Fund. Under this, the investor will be provided with an option wherein they can invest their money in the ‘LIC MF Overnight Fund’ during the NFO period of a newly launched scheme. Further, at the end of the NFO period, they shall be permitted to switch out their invested units at a scheduled frequency from the ‘LIC MF Overnight Fund’ into the newly launched scheme. This facility will provide convenience to the investors in managing their investments during the NFO period without actually monitoring the switching activity.

The terms and conditions related to the said facility are as under:

• Investment shall be made in growth options under both regular and direct plans of the source scheme viz. LIC MF Overnight Fund and the new scheme launched.
• The investor-applicant must be the minimum application amount prescribed both for the source scheme and the new scheme. If an investor already holds units in the source scheme and avails of the facility to make additional purchases, switch-out is effected on a First-In-First-Out basis. What this means is that any additional units purchased through the facility shall be switched out first.
• Any switch-out shall be subject to applicable taxes and exit loads, if any, levied by the source scheme.
• The auto switch facility is applicable only for units held in non-demat form, thus making it available to regular investors who hold units in non-demat form.
• Invest under this facility will be accepted only up to the cut-off time applicable on the last date of the NFO period, hence, for a very short period, this feature will be passed onto the investor.
• Investors may refer to the detailed information available on the website of LIC Mutual Fund at “Auto Switch Facility Form”. The form is enclosed along with enough information and the step-by-step procedure on how to avail the auto switch option effectively.

Conclusion

LIC Mutual Fund reserves the right to alter or withdraw the auto-switch facility in any manner whatsoever and at any time. Any such amendment, however, shall be prospective in nature and shall not affect the investors who have opted for the facility prior to the date of modification. This notice-cum-addendum shall form an integral part of the SID of LIC Mutual Fund, and the investor should take note of the above.

The auto-switch facility is sure to make investment hassle-free in the NFO period and will certainly give more flexibility to the investor for efficient portfolio management.