LICNAMC - LICNMFET

About LIC Nifty 8-13 Yr. G-Sec ETF

• LIC Nifty 8-13 Yr G-Sec ETF is an open-ended scheme offered by the LIC Mutual Fund House.
• It is designed to reflect the performance of government securities (G-Secs) with maturities ranging from 8 to 13 years. These are issued by the government and are considered low-risk.
• The scheme was launched on December 24, 2014.
• The asset under management (AUM) of LIC Nifty 8-13 Yr G-Sec ETF stood at ₹2,032.54 crore as of June 30, 2024.
• Marzban Irani and Pratik Shroff are the fund managers.
• The ETF units of the scheme are listed on NSE which enables investors to trade at market price during each session.
• One can invest in the scheme by buying ETF units through a demat account with a registered broker.

Investment Objective & Benchmark

• The LIC Nifty 8-13 Yr G-Sec ETF provides a measure of the returns and overall performance of this specific segment of the government bond market.
• Nifty 8-13 yr G-Sec Index serves as a benchmark of LIC Nifty 8-13 year G-Sec ETF.
• It invests in bonds issued by the Indian government which are considered low-risk compared to corporate debt.
• Bonds included in the ETF are selected based on criteria such as maturity period, liquidity and market capitalisation.
• The index may be reviewed and rebalanced periodically to ensure it accurately reflects the market.
• By tracking this ETF, investors can gain exposure to a diversified set of government bonds with medium to long-term maturities, potentially benefiting from stable returns and lower risk factors.

Asset Allocation & Portfolio Composition

• The total fund allocation of the LIC Nifty 8-13 Yr G-Sec ETF in government bonds is 99.63%, indicating a highly concentrated investment in this asset class and 0.37% in cash & cash equivalent.

Portfolio Composition Breakdown:

• 7.18% GOVT OF INDIA RED 14-08-2033 is a sovereign bond with a coupon rate of 7.18%, maturity date is August 14, 2033, and the fund size is 42.26% in this ETF.
• 7.10% GOVT OF INDIA RED 08-04-2034 has a coupon rate of 7.10% with a maturity date of April 8, 2034. It is a sovereign bond and the weightage of the bond is 31.70%
• 7.18% GOVT OF INDIA RED 24-07-2037 is a sovereign bond with a coupon rate of 7.18% and a maturity date of July 24, 2037. The fund size portion of the bond is 25.65% in LIC Nifty 8-13 Yr. G-Sec ETF.
• 7.26% GOVT OF INDIA RED 06-02-2033 is a sovereign bond with a maturity date of February 6, 2033. The coupon rate is 7.26% which allocates 0.02% in this ETF.

The ETF has delivered a return of 7.38 % in the past year as of July 31, 2024, compared to the benchmark’s yield of 7.58%

Since its inception, the ETF has posted a return of 6.99%.