LIC Nomura MF Index- Sensex Fund

LIC Nomura Sensex is being managed by Shri Ei-ichi Oka. This fund has been a poor performer all through. It is a passively managed fund. The fund manager’s job ends at allocating funds in stocks in the same proportion as found in Sensex 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 safely skip this one.

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

LIC Nomura Sensex is an index fund which means your money will be invested in stocks on the Sensex in the same proportion as they occur on the index. It has 100% allocation in stocks of large cap 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- Sensex Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in Nov 2002 the value of your investments would be around Rs 3.47 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.13 lakhs The performance has been worse than other mutual funds in this category. The fund has been giving at around 0.83% every year for those who stayed invested for last 5 years. 

Assume you had invested Rs 10,000 every month in LIC Nomura Sensex through SIP for the last 5 years today you would have around Rs 39,136.

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 No exit load applies for units withdrawn post one year.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 Sensex Plan is 1.54%. 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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