LIC Nomura MF Index Fund- Nifty Plan

LIC Nomura MF Index Nifty Plan is being managed by Ei-ichi Oka. The fund has been a laggard like most other nifty index funds. It is a passively managed fund. The fund manager’s job ends at allocating funds in stocks in the same proportion as found in Nifty index. If you have invested in this fund, exit now to invest in a better performing fund. If you are a new investor you can confidently skip this one.

Where does LIC Nomura MF Index Fund- Nifty Plan invest your money?

LIC Nomura MF Index Nifty Plan is an index fund which means your money will be invested in stocks on the Nifty in the same proportion as they occur on the index. About 99% of the fund’s money is allocated to stocks of large companies. Large cap companies tend to be stable compared to mid-cap and small cap companies.

Suitable for what?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • Home Purchase
Not suitable for what?
  • Creation of wealth
  • Lifestyle needs
  • Short term needs
How has LIC Nomura MF Index Fund- Nifty Plan performed in the past?

If you had invested Rs 1 lakh when the fund was launched in Nov 2002, your value of investments would be around Rs 3.3 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.09 lakhs. The performance has been worse than that of other mutual funds in this category. The fund has been giving around 1.76% returns to those who have stayed invested for 5 years.

Assume you had invested Rs 10,000 every month in LIC Nomura MF Index Nifty Plan through SIP for the last 5 years today you would have around Rs 7.37 lakhs.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Not Recommended
What are the charges applicable?

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of LIC Nomura MF Index Nifty Plan is 1.56%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.    

What are the tax implications?

The returns in an equity mutual fund are absolutely tax free, provided you do not withdraw within 1 year. 

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