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LIC Mutual Funds

LIC Mutual Funds

LIC Mutual Funds

LIC Mutual Fund was established on April 20th, 1989 by the Life Insurance Corporation (LIC) of India. It is one of the most well-known players in the asset management sphere as it is an associate company of India’s premier and most trusted brand. These mutual funds are governed by a systematic investment discipline, along with a high standard of financial ethics and corporate governance. This elevates LIC Mutual Funds as the most preferred Investment Manager amongst other investor fraternities.

Features of LIC Mutual Funds

Given below are a few highlights of LIC Mutual Funds:

  • Life Insurance Corporation has gained the trust of many investors ever since its inception. Therefore, the mutual funds offered by it are always the most preferred choice of the Indian mutual fund investors.
  • LIC mutual funds have been in existence for a longer period of time.
  • The funds have a wide range of options to offer investors which can be opted for based on affordability.

Applicability of LIC Mutual Funds

LIC mutual funds are applicable for any individual who can invest a minimum of Rs. 500 per month.

Benefits of LIC Mutual Funds

Given below are the benefits of LIC mutual funds:

  • An individual can put his/her stakes on LIC mutual funds as it is India’s most respected and most significant public domain corporate in India.
  • The entity is well-experienced in the mutual funds’ platform, by which the investors get the best of their investments.
  • For the ease of the investors, it has a vast network of registered branches in the country.
  • Investors can enjoy avail tax deductions for particular products that come under several sections of the Income Tax Act.
  • It has well-established customer support to assist the investors.

Required Documents

The documents that are necessary to invest in an LIC mutual funds are

  • Duly filled application form
  • SIP application form
  • ECS application form
  • Identity proof
  • Address proof
  • Cheque

Minors are required to produce a declaration form parents to make investments in mutual funds.

Application Procedure

The following steps have to be followed to make an online investment in an LIC mutual fund:

Step 1: Choose Invest Online

The individual has to select the ‘invest online’ option.

Step 2: Online PIN Registration

The option ‘Online PIN Registration’ must be chosen.

Step 3: Enter the Details

In the following page, the applicant has to enter all the required details along with the online PIN.

Step 4: Folio Number

Once all the details are entered appropriately, the applicant receives a Folio Number. Further investment procedures can be initiated using this number and the PIN.

Types of LIC Mutual Funds

The following are some of the common types of LIC mutual funds:

  1. Debt Funds
  2. Equity Funds
  3. Hybrid Funds
  4. Exchange-Traded Funds
  5. Liquid Funds
  6. Interval Funds
  7. Fixed Maturity Funds
  8. CPOC (Capital Protection Oriented Funds)
  9. Unit Linked Insurance Scheme

Debt Funds

Debt Funds is a risk-free plan, as it mostly makes investments in securities that are offered by the government. From the outlook of a market, the funds are highly reliable funds. Five debt vehicles are provided by LIC Nomura mutual funds in the investment market, which includes:

  • LIC MF Banking and PSU Debt Fund
  • LIC MF G-Sec Fund
  • LIC MF Savings Fund
  • LIC MF Liquid Fund
  • LIC MF Interval Fund Quarterly Plan Series 1 and Series 2

Equity Funds

Equity Funds make investments in stocks or equities. Therefore, the chance of earning greater returns is higher. The risk factor involved in these funds is synchronising with the market dynamics. The LIC Nomura mutual funds offer 14 options of the asset. The following equity funds are provided by LIC mutual funds.

  • LIC MF Banking and Financial Services Fund
  • LIC MF Multicap Fund
  • LIC MF Large Cap Fund
  • LIC MF Infrastructure Fund
  • LIC MF Large and Mid Cap Fund
  • LIC MF Tax Plan
  • LIC MF Rajiv Gandhi Equity Savings Scheme Series 2 and Series 3
  • LIC MF Bond Fund
  • LIC MF Banking & PSU Debt Fund
  • LIC MF G-Sec Fund
  • LIC MF Savings Fund
  • LIC MF Liquid Fund
  • LIC MF Interval Fund Quarterly Plan Series 1 and Series 2

Hybrid Funds

Hybrid funds are mutual funds that have a blend of equity stock and debt in the portfolio fund. These funds assure a steady return that is higher than the debt funds but lower than the equity funds. These funds are preferred by investors with moderate risk appetite. The following type of hybrid funds are offered by LIC mutual funds:

  • LIC MF Equity Hybrid Fund
  • LIC MF Debt Hybrid Fund
  • LIC MF Unit Linked Insurance Scheme
  • LIC MF Capital Protection Oriented Fund (Series 1,2,3 and 4)

Exchange-Traded Funds

Exchange-Traded Funds are similar to mutual funds, which is even reflected in the way they purchase equities of various corporations. The disagreement is that ETFs makes sale and purchase of funds the whole day whereas mutual funds are bought and sold during the end of the day according to the Net Asset Value (NAV) statistics. This particular entity provides ETF in the form of LIC Nomura G-Sec Long-term Exchange Traded Fund.

Liquid Funds

Liquid Funds are considered as a substitute for short-term funds. The investments made in these funds are subjected to a low-risk market that has zero lock-in period, which makes liquid fund an excellent choice for an investor. LIC Nomura mutual fund liquid fund is a form of liquid investment instrument that is offered by LIC Nomura mutual funds.

Interval Funds

Interval Funds are developed to decrease the rate of interest risks involved. It works by the principle of making investments in a couple of fixed-income securities that mature on or before or the actual maturity of the vehicle. Interval funds are provided in four variants, namely:

  • Interval Fund Monthly Plan
  • Interval Fund Quarterly Plan (Series 1)
  • Interval Fund Annual Fund
  • Interval Fund Quarterly Plan (Series 2)

Fixed Maturity Funds

Fixed Maturity Funds are low-risk and fixed income plans that make investments in debt vehicles. LIC Nomura mutual funds offer only one variant of this plan.

CPOC (Capital Protection Oriented Funds)

CPOC is a set of funds that make investments in a blend of equity and debt instruments where debt vehicle comprises 80 per cent of the total corpus. The scheme assists in eliminating the involvement of any risk. Meanwhile, it provides broad exposure to equity vehicles. Capital Protection Oriented Funds are of five variants, which includes LIC Nomura mutual funds and Capital Protection-Oriented Fund (Series 1, Series 2, Series 3, Series 4, Series 5).

Unit Linked Insurance Scheme

Unit Linked Insurance Scheme is an open-ended scheme that provides:

  • Long-term capital gains, along with free accidental insurance coverage.
  • Deduction according to Section 80C of the Income Tax Act.
  • Life cover.

Know more about Types of Mutual Funds