Overview

Using an analogy from Cricket, a winning cricket team has good mix of Batsman, Bowler & all-rounders; likewise in Investment, a successful investment strategy need to have mix of Equity, Bonds & Gold as the pitch/market conditions are always uncertain. The empirical research also brings out the same outcome with over 90% returns attributable to allocation and only 10% to selection.

Asset allocation is a time-tested strategy, which is still as relevant as it was in the last century. Infact asset allocation theme is gaining traction as the equity and bond market moves, according to some, are trading beyond fair valued status.

We at LIC AMC believe that asset allocation creates long term wealth with lower volatility. LIC AMC Proudly presents to you “LICMF All Weather Asset Allocator PMS”; a Discretionary PMS strategy that will invest in equity, bonds & gold on the principal tenets of asset allocation.

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This is the next generation Quantamental (hybrid of Quantitative & Fundamental) asset allocation strategy designed to achieve risk adjusted returns

Strategy Documents

Multi-stage portfolio creation:

Step 1: Initial asset class allocation road map is laid by rigorous price & volatility simulations.

Step 2: Simulated weights are later validated and optimised by fundamental assessment.

Step 3: Once asset mix is identified the expression in Investor’s portfolio is via direct equity/bonds/gold and Mutual Funds/ETFs scheme based on market conditions.

Step 4: Based on investors risk appetite she/he is assigned Aggressive, Moderate or Conservative portfolio.

Step 5: Need based portfolio rebalancing after due consideration to change macro/micro & returns picture.

Tailor made portfolios based on risk:

Entire universe of assets selected is then bucketed into 3 tailor-made portfolios, i.e Aggressive, Moderate and Conservative.
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  • Conservative portfolio has predominantly debt & liquid allocation. Hence ,less volatile and may be suitable for risk averse investor
  • Moderate portfolio has a good balance of equity and debt. Hence, slightly volatile and may be suitable for balanced investor, who can endure short term volatility.
  • Aggressive portfolio has a larger equity allocation and may be suitable for Investor who has higher risk appetite and could see higher volatility in medium term and potential loss of capital, in return for higher returns in long run.

This product is meant for:

  • New investors, as this product may take care of their entire asset allocation/retirement planning strategy.
  • Existing investors, as this product may limit beta risk and achieve optimal return profile via asset allocation.

Fee Structure

Fees Direct Plan Regular Plan
Management Fees
Conservative Portfolio 1.10% 1.25%
Moderate Portfolio 1.35% 1.50%
Aggressive Portfolio 1.60% 1.75%
Custodian Fees/ Fund Accounting/ Demat Account Opening and maintenance charges/ Audit fees/ Registrars and Transfer Agents’ Fees/Other Expenses Upto 0.50% per annum of the client’s daily Assets under Management (AUM).
Exit Load 1 % in first 24 months of Investment.

Minimum investment: INR 50 lacs

Head PMS

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Mr. Azeem Ahmad is spearheading the PMS vertical at LICMF AM Ltd ( currently managing AuM of over 1650 crs across various schemes). In his last assignment at ICICI Securities, he was the sole Fund Manager, PMS (Discretionary & Non-discretionary portfolios). He has over 20 years of experience and held roles including that of Chief Macro & Derivatives Strategist. He has expertise in the areas of portfolio management, fundamental research, global macro, equity, FX and derivatives research & product development. By Qualification, he is an MBA (Finance) from SP Jain and an Associate Company Secretary (ACS).



General Disclaimer: All returns are in percentage. Performance disclosure is at aggregate portfolio level and the portfolio information (i.e. market cap, sector allocations, etc.) is at model client’s level. Securities investments are subject to market risks and there is no assurance or guarantee that the objective of the investments will be achieved. Past performance of the portfolio manager does not indicate its future performance. Performance related information provided herein is not verified by SEBI. Detailed Disclaimer: This document is issued by LIC MF Asset Management Ltd. (Portfolio Managers). This document is produced for information purposes only and not a complete disclosure of every material fact and terms and conditions. It does not constitute a prospectus or disclosure document or an offer or solicitation to buy any securities or other investment. All opinions, figures, charts/graphs, estimates and data included in this document is subject to change without notice. It should not be construed as investment advice to any party. The statements contained herein may include statements of future expectations and other forward-looking statements that are based on our current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Investors shall be fully responsible/ liable for any decision taken on the basis of this document. Clients under Portfolio Management Services are not being offered any guaranteed/assured returns. The name of the strategies do not in any manner indicate their prospects or return. The investments may not be suited to all categories of investors. The material is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Neither LIC MF Asset Management Ltd. nor any person connected with it, accepts any liability, losses and/ or damages arising from the use of this material. The recipient of this material should rely on their investigations and take their own professional advice. Opinions, if any, expressed are our opinions as of the date of appearing on this material only. While we endeavor to update it on a reasonable basis, there may be regulatory, compliance, or other reasons that prevent us from doing so. The Portfolio Manager is not responsible for any loss or shortfall resulting from the operation of the strategy. The recipient shall understand that the statements cannot disclose all the risks and characteristics. The recipient is requested to take into consideration all the risk factors including their financial condition, suitability to risk-return, etc. As with any investment in securities, the value of the portfolio under management may fluctuate depending on the various factors and forces affecting the capital market. Disclosure Document shall be obtained and read carefully before executing the PMS agreement. For tax consequences, each investor is advised to consult his / her own professional tax advisor. This document is not for public distribution and has been furnished solely for information and must not be reproduced or redistributed to any other person. Persons into whose possession this document may come are required to observe these restrictions. Distribution Restrictions – This material should not be circulated in countries where restrictions exist on soliciting business from potential clients residing in such countries. Recipients of this material should inform themselves about and observe any such restrictions.