Description

BSE announces the activation of AUTO Switch facility for LIC MF Consumption Fund NFO, allowing automatic switches from LIC MF Overnight Fund to the new consumption fund.

Summary

BSE has activated the AUTO Switch facility for LIC MF Consumption Fund NFO on the BSE StAR MF platform. This facility enables automatic switching of investments from LIC MF Overnight Fund to the newly launched LIC MF Consumption Fund, available for both Regular and Direct plan options with Growth variants.

Key Points

  • AUTO Switch facility activated for LIC MF Consumption Fund NFO
  • Two subscription routes available: Regular Plan and Direct Plan (both Growth options)
  • Investments initially placed in LIC MF Overnight Fund will be automatically switched to LIC MF Consumption Fund
  • Transaction reporting to AMC/RTA will reflect the final destination scheme (LIC MF Consumption Fund)
  • Facility available on BSE StAR MF platform

Regulatory Changes

No regulatory changes introduced. This is an operational facility activation.

Compliance Requirements

  • Intermediaries must ensure proper transaction reporting to AMC/RTA using the specified scheme names
  • Subscription received scheme names differ from transaction reporting scheme names as per the mapping provided
  • Regular Plan subscriptions: Report as “LIC MF CONSUMPTION FUND - REGULAR PLAN-GROWTH”
  • Direct Plan subscriptions: Report as “LIC MF CONSUMPTION FUND - DIRECT PLAN GROWTH”

Important Dates

  • Circular Date: October 30, 2025
  • Facility Activation: Effective immediately

Impact Assessment

Low market impact. This is a platform-specific operational update that facilitates investor convenience for NFO subscriptions. The AUTO Switch mechanism allows seamless transition from a liquid fund (Overnight Fund) to the target fund (Consumption Fund) during the NFO period. Impact is limited to investors specifically opting for LIC MF Consumption Fund NFO through the auto-switch route on BSE StAR MF platform.

Impact Justification

Operational update for mutual fund platform functionality enabling auto-switch facility for a specific NFO; affects only investors opting for this feature