3 Things to Know About LIC Mutual Fund

LIC Mutual Fund was introduced by Life Insurance Corporation of India on 20th April 1989. LIC Mutual Fund is a well-known player in asset management. The company offers simplified investment options to the investors and provides a comprehensive growth of assets under management.

Many people don’t consider investing in LIC Mutual Fund because LIC is primarily known for its life insurance products, but with an approximately four-fold expansion of assets in March 2017 from March 2012, LIC Mutual Fund is growing as a preferred investment option for investors.

Here are the top 3 things that you should know about LIC Mutual Fund.

The Growth of LIC Mutual Fund-

LIC mutual fund has witnessed a four-fold growth in assets in the last five years. A substantial part of the increase of assets has been recorded in the last two years. With 130% of growth over a period of 2 years, LIC Mutual Fund has outperformed the industry’s asset growth of 54% and is fast becoming a popular choice among investors. For your knowledge, let’s take a look at some of the best performing LIC Mutual Funds.

Scheme Name Type NAV Return (%)

3 years

Return (%)

5 years

LICMF Savings Plus Fund Direct-Growth Growth 27.69 8.2% 8.64%
LICMF Savings Plus Fund Direct-Dividend Monthly Dividend 14.47 8.2% 8.64%
LIC Mutual Fund Midcap Fund Direct-Growth Growth 15.52 14.22% 0
LICMF Income Plus Direct-Dividend Daily Dividend 10.16 7.34% 7.82%
LICMF Saving Plus Fund-Growth Growth 26.62 7.32% 7.82%

 

Key Features of LIC Mutual Fund

  1. LIC Mutual Fund offers a wide range of fund options to its investors.
  2. LIC Mutual Fund has introduced the Systematic Investment Plan (SIP) with an option to invest as little as Rs.300 per day, in order to achieve a 30% growth in the SIP portfolio.
  3. Investors can also invest daily SIPs in two hybrid schemes, LIC MF monthly income plan, and LICMF balanced fund.
  4. Investors can check the performance of various funds by visiting the LIC website and entering LIC Login
  5. LIC Mutual Fund offers a diverse product basket of on debt and equity products.
  6. The scheme also offers a good representation of various investment styles and strategies.
  7. LIC MF manages 21 open-ended and 21 close-ended schemes.
  8. LIC MF tax plan is an equity oriented scheme that offers the benefit of tax exemption under section 80C of Income Tax Act.

Different Types of Fund Offered by LIC Mutual Fund

LIC mutual fund offers investors various fund options to choose from. Let’s take a look at the some of these options:

  1. Debt Fund

In a debt fund, the money is invested in different government securities. This plan is best suited for individuals with a low-risk appetite, and offers good returns on investment.

  1. Equity Fund

In this fund option, money is invested in equity, stocks, and equity-related securities. The plan offers a higher return on investment and is best suited for individuals with a moderate risk appetite. The risk factor involves in this fund is in sync with market dynamics.

  1. Liquid Fund-

Liquid funds are considered an alternative to short-term funds. In this fund option, the investments are made in a low-risk market that comes with a no lock-in period option.

  1. Fixed Maturity Fund-

This is also a low-risk fixed income plan wherein the investments are made in debt instruments. This fund option is best suited for individuals who have a low-risk appetite and want a continuous flow of income.

  1. Unit Linked Insurance Fund

This is an open-ended fund option that offers long-term capital gains along with the benefit of life coverage, tax benefit under section 80C of Income Tax Act, and free accidental insurance coverage.

Conclusion                

With a team of experienced market professionals and an array of fund options to choose from, LIC Mutual Funds offers reliability to its investors and helps them create a strong investment portfolio so that they can reap the benefits of investment in the long run.

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