Since its launch, the Mutual Fund has lived up to the reputation of its principal, the LIC which is synonymous with trust in the Indian financial pantheon. LIC has been a pioneer in the business of insurance bringing a smile by insuring over 250 million lives, which has made it the largest insurer in the world. With such a strong foundation, LIC Mutual Fund has embarked on its promising journey. The shareholding pattern of the fund is another indicator of its strong fundamentals, given the strength and depth of the individual partners, who on their play a leadership role in their respective fields. The stakeholders of LIC Mutual Fund Trustee Pvt Ltd. are:
- LIC of India:00%.
- LIC Housing Finance Ltd. : 35.30%
- GIC Housing Finance Ltd. : 15.70%
The shareholding pattern of the AMC named LIC Mutual Fund Asset Management Ltd. is:
- LIC of India: 45.0%.
- LIC Housing Finance Ltd. : 39.3%
- GIC Housing Finance Ltd. : 11.7%
- Corporation Bank: 4.0%
About LIC Mutual Fund
Founded by LIC of India- a government-funded insurance company, LIC Mutual Fund became operational on April 20, 1989. LIC Mutual Fund is a reliable choice of all people across the country. It’s a joint venture between GIC Housing Finance Limited, LIC Housing Finance Limited and Corporation Bank. LIC MF follows a simplified investment discipline and maintains a high corporate governance and financial ethics standard. This is why it has emerged as one of the most preferred mutual fund providers in the investment market.
LIC MF offers robust investment plans that are driven by innovation and combined with experience. The plan caters to various investment segments.
LIC Mutual Funds Products:
The fund offers a wide spectrum of Mutual Funds to satisfy your individual need depending on your risk appetite, financial goals and capacity to invest. They are broadly classified as:
- Equity Funds
- Debt Funds
- Hybrid Funds
- Solution Oriented Funds
- ETF and Index Funds
LIC MF Equity Funds- Variants:
- LIC MF Banking and Financial Services Fund: It is an open-ended high-risk scheme whose investment objective is to generate long-term capital appreciation for unitholders from an instrument that is invested predominantly in equity and stock securities of companies engaged in banking and financial services sector.
- LIC MF Multi-Cap Fund: An open-ended pure growth moderately high-risk scheme, seeking to provide capital growth by investing mainly in a mix of equity instruments.
- LIC MF Large Cap Fund: An open-ended moderately high-risk scheme aimed to achieve a capital appreciation for a long term by investing in a diversified portfolio, predominantly consisting of equity and stocks of large-cap companies including derivatives.
- LIC MF Infrastructure Fund: An open-ended high-risk scheme aimed to generate long-term growth from a portfolio comprising of equity or equity related instruments of companies engaged either directly or indirectly in the infrastructure sector.
- LIC MF Large and Mid-Cap Fund: An open-ended moderately high-risk scheme aimed to generate capital appreciation for the long term by investing substantially in a portfolio of equity and stocks of large-cap and midcap companies.
- LIC MF Tax Plan Fund: An open-ended moderately high-risk tax saving scheme to provide capital growth along with tax rebate and tax relief to your investors through prudent investments in the stock markets. It offers tax rebate under Section 80C of the Income Tax Act 1961.
LIC MF Debt Funds- Variants:
- LIC MF Bond Fund: An open-ended moderate risk debt scheme which endeavors to generate an attractive return for its investors by investing in a portfolio in between 4 years and 7
- LIC MF Banking and PSU Debt Fund: An open-ended moderate risk debt scheme to generate income and capital appreciation by primarily investing in a portfolio money market and debt securities of high quality that is issued by banks, public sector undertakings, public financial institutions, and Municipal Bonds.
- LIC MF Government Securities Fund: An open-ended moderate risk debt scheme to generate reasonable returns through investments in sovereign securities issued and guaranteed by the central and state governments for repayment of principal and interest and reverse repos in such securities as and when permitted by RBI.
- LIC MF Savings Fund: An open-ended moderate risk debt scheme to generate income by investing in a portfolio of quality short-term debt securities.
- LIC MF Savings Fund: An open-ended low-risk debt scheme to generate reasonable returns with low risk and high liquidity, through a judicious mix of investment in money market instruments and quality debt instruments.
LIC MF Hybrid Funds- Variants
- LIC MF Equity Hybrid Fund: An open-ended moderately high-risk balanced scheme aimed to generate regular returns and capital appreciation according to the selection of plan by investing in equities and debt.
- LIC MF Debt Hybrid Fund: An open-ended moderately high-risk balanced scheme to invest in a portfolio of money market instruments and quality debt securities to generate regular income.
- LIC MF ULIS Fund: An open-ended moderately high-risk balanced scheme to generate long-term capital appreciation and offer tax benefits Under Section 10C of the Income Tax Act,1961 as well as additional benefits of a life cover and free accident insurance cover.
LIC MF Solution Oriented Funds- Variants
- LIC MF Children’s Gift Fund: An open-ended moderately high-risk scheme to generate capital appreciation and provide long-term growth opportunities by investing in a portfolio constituted of equity securities and securities that are stock related, and the secondary objective is to generate consistent returns by investing in debt and money market securities.
LIC MF ETF and Index Funds- Variants:
- LIC MF Exchange Traded Fund – Nifty 100: An open-ended moderately high-risk scheme to generate returns that are close to the total returns of securities as represented by NIFTY 100 INDEX, subject to tracking errors.
- LIC MF Exchange Traded Fund – Nifty 50: An open-ended moderately high-risk scheme to generate returns that are close to the total returns of securities as represented by NIFTY 50 Index, subject to tracking errors.
- LIC MF G-Sec Long Term ETF Fund: An open-ended moderate risk scheme to provide returns that generate returns that are close to the total returns of securities as represented by Nifty 8-13 yr G-Sec Index, subject to tracking errors.
- LIC MF Index Fund – Nifty Plan: An open-ended moderately high-risk scheme to provide returns commensurate with the performance of the index Nifty based on the plans by investing in the respective index instruments subject to tracking errors.
- LIC MF Index Fund – Sensex Plan
An open-ended moderately high-risk scheme to provide returns commensurate with the performance of the index S&P BSE Sensex based on the plans by investing in the respective index instruments subject to tracking errors.
Why LIC Mutual Funds?
The following features of the LIC Mutual Fund make it stand out among its competitors.
- Trusted by the People
LIC Mutual Funds is one of the topmost choices of the Indian mutual fund investors. Following the footsteps of Life Insurance Corporation, LIC MF has become the preferred company for various investors. LICMF is trusted by its investors as it provides the best investment advice, support, and services.
- Experience and Expertise
Being one of the pioneers, LIC has more than 25 years of experience in the mutual fund investment market. The company has expertise as well as experience.
LIC Mutual Fund Types
Mentioned below are the various types of mutual funds offered by LIC Mutual Fund:
LIC Debt Mutual Funds
These funds are relatively risk-free, they make investments majorly in securities offered by the government, which makes them highly reliable funds.
LIC Equity Mutual Funds
These funds make investments in stocks or equities. As a result, they offer greater chances of earning high returns. The risk factor involved, therefore, is also proportional.
LIC Exchange Traded Mutual Funds
These funds are not exactly mutual funds but a lot like them. Similar to mutual funds they also invest in equities of various corporations. The main point of difference between exchange-traded funds and mutual funds is that ETFs make the sales and purchases of their funds the whole day, whereas mutual funds are bought and sold at the end of the day as per the fund’s Net Asset Value (NAV) of the day.
LIC Hybrid Mutual Funds
These funds diversify investments amongst two or more asset classes. These funds invest in a mix of stocks as well as bonds.
LIC Solution Oriented Mutual Funds
These are funds that are crafted specifically for the fulfillment of future financial goals such as a child’s marriage or retirement, hence providing solutions.
LIC Mutual Fund Plans
The various mutual funds offered by LIC Mutual Fund are listed below.
LIC Debt Mutual Funds
These are the various Debt Funds offered by LIC Mutual Fund.
- LIC MF Bond Fund (Open-ended scheme)
- LIC MF Banking and PSU Debt Fund (Open-ended scheme)
- LIC MF GSEC Fund (Open-ended scheme)
- LIC MF Savings Fund (Open-ended scheme)
- LIC MF Liquid Fund (Open-ended scheme)
- LIC MF Interval Fund Quarterly Plan (Interval Scheme)
- LIC MF Interval Fund Annual Fund (Interval Scheme)
- LIC MF Interval Fund Monthly Fund (Interval Scheme)
LIC Equity Mutual Funds
These are the various Equity Funds offered by LIC Mutual Fund.
- LIC MF Banking and Financial Services Fund (Open-ended scheme)
- LIC MF Multicap Fund (Open-ended scheme)
- LIC MF Large Cap Fund (Open-ended scheme)
- LIC MF Infrastructure Fund (Open-ended scheme)
- LIC MF Large and Mid Cap Fund (Open-ended scheme)
- LIC MF Tax Plan (Open-ended scheme)
- LIC MF Diversified Equity Fund (Close-ended scheme)
- LIC MF Rajiv Gandhi Equity Savings Scheme (Close-ended scheme)
LIC Exchange Traded Mutual Funds
These are the various Exchange – Traded Funds offered by LIC Mutual Fund.
- LIC MF Exchange Traded Fund – Nifty 100 (Open-ended scheme)
- LIC MF Exchange Traded Fund – Nifty 50 (Open-ended scheme)
- LIC MF Exchange Traded Fund -SENSEX (Open-ended scheme)
- LIC MF G-Sec Long Term Exchange Traded Fund (Open-ended scheme)
- LIC MF Index Fund Nifty (Open-ended scheme)
- LIC MF Index Fund Sensex (Open-ended scheme)
LIC Hybrid Mutual Funds
These are the various Hybrid Funds offered by LIC Mutual Fund.
- LIC MF Equity Hybrid Fund (Open-ended scheme)
- LIC MF Debt Hybrid Fund (Open-ended scheme)
- LIC MF Unit Linked Insurance Scheme (Open-ended scheme)
- LIC MF Dual Advantage Fund (Closed-ended scheme)
- LIC MF Capital Protection Oriented Fund (Closed-ended scheme)
LIC Solution Oriented Mutual Funds
These are the various Solution Oriented Funds offered by LIC Mutual Fund.
- LIC MF Children’s Gift Fund (Open-ended scheme)
LIC Mutual Fund Benefits
Given below are the reasons why you should go for LIC Mutual Fund, as do a huge number of Indian investors.
Since LIC Mutual Funds is a subsidiary of India’s most reputed and largest public domain corporate, customers can rely completely on LIC Mutual Funds without worries.
- LIC Mutual Funds Tax Benefit
Investors of LIC mutual Funds can enjoy tax deductions for specific products offered by the LIC MF under Section 80C and Section 88 of the Income Tax Act, 1861.
- Wide Network
LIC Mutual Fund has a large network of registered branches pan-India making it easy to reach and contact.
- Commendable Customer Support
LIC Mutual Fund has a widely established customer care network. It provides commendable customer support to its investors.
LIC Mutual Fund Daily SIP
The LIC Mutual Fund has recently launched a daily SIP for you with an investment sum as small as Rs.300 daily. The number of days reckoned for investment in a month has been fixed to 22 working days. The present monthly SIP inflow of LIC Mutual Fund is Rs.23 crores. With the introduction of this scheme, a 30% rise is projected, and the monthly inflow is likely to be Rs.30 crores. But before we proceed further into the details of the scheme, let us learn the meaning and mechanism of SIP.
Meaning of Systematic Investment Plan (SIP):
Systematic Investment Plan is also referred to as SIP. It is a scheme whereby you invest a fixed sum in your favorite mutual fund scheme regularly; generally, it is monthly. In SIP, a fixed amount agreed upon by you is deducted from your account every month and directed towards the mutual fund you choose to invest in. The biggest advantage of SIP is that you can start with a very small amount and the funds are liquid, ie. you can redeem your units partially or totally at any time you choose in case of a financial emergency.
Benefits of LIC Daily SIP Fund:
Your SIP investment may be as low as Rs.500, yet reap big returns by investing in a plan of your choice. It is a convenient way to invest for which also bring financial discipline. The immediate benefits are:
- In the category of ELSS Schemes with tax savings options, it has the lowest lock-in period.
- It offers tax savings in the EEE format under Section 80C of the Income Tax Act, 1961.
- Compounding of interest beings better long-term benefits.
- Being an ELSS instrument, it gives better returns than term deposits in banks.
Reasons to invest in LIC Daily SIP
The philosophy of “Save First, Spend Next” matches the focused concept of SIP. SIP permits you to invest a small fixed amount at intervals which can be daily, weekly, monthly or quarterly as compared to a one-time investment which may deter you from investing because of the inherent inconvenience.
- Compounding of Interest: The principle of compounding of interest ensures that you earn higher returns in the long run.
- Low initial Investment: Through SIP, your initial investment can be as low as RS.500 per month, without putting a strain on your pocket. You may increase your installment amount subsequently.
- Rupee Cost Averaging: In SIP, every installment of yours fetches you some units. The market being volatile, you get a higher number of units when there is a slump and the reverse when there is a boom in the market.
- Inculcates discipline: Through SIP you become a disciplined investor. Since the debit to your account is through ECS, you do not have to remember about periodic payments.
- Liquid funds: Since you can redeem your units at any time of your choice, it acts as an emergency reserve fund to meet your unforeseen needs.
LIC Mutual Fund Daily SIP Scheme
The innovative scheme launched by the LIC Mutual Fund gives you an impetus to invest in a Mutual Fund through the LIC SIP plan route. With just Rs.300 per day, you get access to Equity and Hybrid funds, in turn, assured potential high returns. The company, on the other hand, expects a growth of 30% in its LIC SIP plans portfolio. The schemes where your fund will be invested are:
- MF Equity Fund
- MF Monthly Income Plan
- MF Midcap Fund
- MF Infrastructure Fund
- MF Growth Fund
- MF Index Fund
- MF Balanced Fund
Steps to invest in LIC Mutual Funds Daily SIP
To enroll yourself with SIP requires you to follow certain prescribed rules and defined steps. The sequential steps are described below:
- Login to the e-KYC portal and complete the process to become KYC compliant.
- Submit your address proof, PAN and valid ID proof.
- Select a right intermediary or an AMC for choosing the SIP-based on your capacity and preferences.
- Decide on the amount and mode of payment. It is preferable for ECS debit to your account on a select date that is convenient for
- Decide the period for investment; whether daily, weekly, monthly or quarterly.
- Once these formalities are completed, submit the duly filled in form to the intermediary or the AMC.
LIC Mutual Fund has adopted the innovative step of daily SIP to inculcate the tradition of daily investment with an aim to generate wealth. According to Shri Rajesh Patwardhan, The CMO, LIC Mutual Fund, there is a rise of 56 percent in the LIC SIP plans portfolio in the current financial year. In order to boost the recognition of LIC Mutual Fund amongst the depositors, as it pushes for disciplined investments not bothering about the volatility of the market. He further averred that the daily SIP route would benefit the clientele from rupee value adjustments.