LIC AMC announces Change in Investor Education & Awareness expense of designated Schemes
LIC Mutual Fund Asset Management has announced addendum to the Scheme Information Document (SID) and Key Information Memorandum (KIM) of Designated Schemes of LIC Mutual Fund.
LIC Mutual Fund has informed that SEBI vide its circular no. SEBI/HO/IMD/PoD2/P/CIR/2024/183 dated 31st December 2024, has prescribed that the AMCs shall allocate 5% of total TER charged to direct plans, subject to maximum of 0.5 bps of AUM towards investor education and awareness initiatives for Passive schemes and Overseas Fund of Funds (FoFs) based on underlying indices specified in clause 3 and 4 of the aforesaid Circular.
Further, as per clause 3 and 4 of the aforesaid SEBI Circular, AMFI, in consultation with SEBI, shall prescribe the list of such indices on a periodic basis. Accordingly, AMFI has vide its communication no.35P/MEM-COR/116/2024-25 dated 15th March 2025, prescribed the list of domestic equity indices and domestic debt indices for applicability of the provisions of the aforesaid SEBI Circular. The aforesaid provision was applicable with effect from 16th March 2025.
In light of the above, the clause relating to percentage of funds allocated towards investor education & awareness initiative specified in the Scheme Information Document of LIC MF Nifty 50 ETF, LIC MF BSE Sensex ETF, LIC MF Nifty 100 ETF, LIC MF Gold Exchange Traded Fund, LIC MF Nifty 50 Index Fund, LIC MF BSE Sensex Index Fund, LIC MF Nifty Next 50 Index Fund (the designated Schemes) under the heading ‘Annual Scheme Recurring Expenses’ stands revised from ‘At least 1 bps on daily net assets within the maximum limit of overall expense Ratio shall be annually set apart for investor education and awareness initiatives’ (Existing provision) to ‘The AMC shall set aside 5% of total TER charged to direct plan* of the Scheme, or 0.5 bps of AUM, whichever is less towards investor education and awareness initiatives’ (Revised provision). *5% of the total TER charged to the Scheme for Exchange Traded Funds.
Necessary or incidental changes in the above regard shall be carried out in the SID and KIM of the aforementioned Schemes of LIC Mutual Fund. This Notice cum Addendum forms an integral part of the SID and KIM of the aforementioned Schemes of LIC Mutual Fund as amended from time to time. All other terms & conditions of the SID and KIM of the aforementioned Schemes remain unchanged.
