LIC Nomura Mutual Fund to launch 6 new products by FY15-end

LIC Nomura Mutual Fund plans to launch half a dozen new products by this fiscal-end and it has already approached regulator SEBI for clearance to one of them.
"We have 29 products in our portfolio, including seven equity funds. We are planning to launch six new products by the end of the current fiscal and we have already filed for one of them, which is debt ETF, before SEBI," LIC Nomura CEO NIlesh Sathe told PTI here today.
He was speaking on the sidelines of an event organised by Gandhi Films Foundation on the eve of Gandhi Jayanti.
The remaining products to be launched by us in FY15 include diversified equity plan, mid-cap, Rajiv Gandhi Equity, capital protection fund and fixed maturity scheme, he said.

The company plans to increase its assets under management (AUM) to Rs 12,000 crore from around Rs 10,000 crore now by the end of the current financial year.
"We are planning to increase our AUM to Rs 12,000 crore from the current around Rs 10,000 crore level."

SEBI has allowed MF houses to incentivise agents or individual fund advisors from their expense flows after it withdrew entry load in August 2009. Keeping this in view, LIC Nomura is incentivising its 28,000-odd active agents by paying them commission out of the net asset value they bring to the company's fold.
"Our individual fund advisors (agents) don't get upfront commission. However, they get trail commission up to 1.5 per cent out of the NAV they bring," he said, adding LIC Nomura agents are responsible for more than 80 per cent of its business.

LIC Mutual Fund was set up in April 1989. LIC, the single largest domestic investor in the market managing assets over Rs 17 trillion, holds a 45 per cent stake in the venture. In January 2011, it roped in Japanese financial powerhouse Nomura, which holds a 35 per cent stake in the company.