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LIC Mutual Fund

Established in the year 1989 on the 20th of April by Life Insurance Corporation of India, LIC Mutual Fund is one of the most trusted companies that offers various investment instruments to its investors. It caters to all segments of investors.

In the sections below, we will elaborate upon the functioning of the LIC Mutual Fund:

Features of LIC Mutual Fund

The main features of LIC Mutual Fund which make it an ideal option for investment are:

The first choice for Mutual Funds

Life Insurance Corporation has garnered the trust of many investors ever since the beginning of time. Hence, the mutual funds offered by the corporation come with a certain trust.

Experienced manager for your money

LIC Mutual Fund was established by Life Insurance Corporation which has been in existence for a long time. Even its subsidiary- LIC Mutual Fund has now been functioning for over 25 years. Hence, the experience of the experts here is unparalleled.

A wide variety of options for all segments of investors

One of the best things about LIC is that it has been established keeping in mind the Indian market. It has a plethora of options to offer to investors wherein they can choose an amount based on how much they can afford.

Types by LIC Mutual Fund

There are various investment options offered by LIC Mutual Fund. Here are the following options that one can consider:

Who can invest in LIC Mutual Fund?

The best part about LIC Mutual Fund is that anybody can invest in these funds. There are funds that are curated for everybody’s needs and even an amount of minimum Rs. 500 a month can be put towards a financially secure future.

Documents Required for Investing in LIC Mutual Fund

Opting for a mutual fund investment goes a long way in helping with wealth creation. Now, buying one requires a certain level of documentation. To do the same, one needs to submit an application form along with one form for SIP Plan and for ECS system too. Documents for KYC, identity proof and an address proof are required. A cheque is needed and a declaration by the parents for minors is required too.

How to Invest in LIC Mutual Fund Online?

To invest in an LIC Mutual Fund scheme, you would first need to choose the invest online option and then click on the online PIN registration. Thereafter, you need fill all the required details along with the online PIN. You will then get a Folio Number and using this as well as the PIN, you can make further investments online.

Why Choose LIC Mutual Fund?

One of the main reasons to choose LIC has to be the trust that it has gained ever since its inception in the late 80s. Their experience and expertise in the mutual fund industry make it a top choice.

FAQs on LIC Mutual Fund

Are mutual funds taxed when withdrawn?

Yes, Mutual funds are taxed when withdrawn but if you withdraw after a certain lock-in period, then there is no issue. However, if it is done within the lock-in period, then you will lose a considerable amount to taxation.

Are withdrawals from investments taxable?

Depending upon the mutual funds you invest in the withdrawals can be taxable. The taxation rules for debt funds, equity mutual funds, and systematic withdrawal plans are different.

Can I stop a SIP anytime?

You are free to stop a SIP anytime. However, to withdraw the amount, you need to abide by the lock-in period, if any.

Can you sell a mutual fund at any time?

The trading for mutual funds stops at 2 PM, much earlier than what is applicable for stocks.

Can you withdraw a mutual fund without incurring penalty?

If you remove money before the designated lock-in period, then you will have to face a penalty.

Can you take money out of an investment account?

Yes, most mutual funds allow partial withdrawals or even complete withdrawals depending upon the type of mutual fund you have opted for.

Can you take money out of your brokerage account?

No, you can only transact for trading with a brokerage account.

Can you withdraw mutual funds anytime?

You can do partial or complete withdrawals once the lock in period is completely over.

Do I pay taxes when selling mutual funds?

If it is a long-term mutual fund, then you may have to pay a certain amount for long term capital gains tax. However, this depends from fund to fund and you may need to pay taxes while selling certain mutual funds.

Do you pay taxes on investments?

There are certain investments listed under Section 80C under the Income Tax Act which are tax exempt. However, you would need to pay taxes on some investments and the gains from them.

How do I become a mutual fund agent?

In order to become a mutual fund agent, you would need to join the Principal Mutual Fund Distributor Community. You also need to become a distributor of Principal Mutual Fund and be authorized for the same. Once you pass the NISM or AMFI certification, you would need to obtain an AMFI Registration number.

How do I close a SIP mutual fund?

You can close a SIP Mutual Fund after sending an application physically or applying online.

How do I sell mutual funds?

You can contact your financial advisor, your agent or simply log on to the portal of the investment company where you have a mutual fund. You can then transact and sell the mutual funds.

How do mutual fund advisors get paid?

The mutual fund advisors may earn through commission or brokerage from the mutual fund house whose products they are selling.

How much commission do mutual fund agents make?

The mutual fund agents’ commission is basically included in the expense ratio and not disclosed upfront. For instance, the regular plan’s expense ratio is approximately around 1.5%-3% per annum which includes agents commission for regular plans.

Is LIC Mutual Fund a good option?

LIC Mutual Fund is one of the most trusted mutual fund companies in India and has gained trust of customers over the years. Hence, LIC Mutual Fund is an ideal place to make your investments.

What is the cost to open a brokerage account?

There are plenty of options for opening brokerage accounts. One must look around and compare to find a broker who offers him the best deal and value for money. One of the most affordable places to open a brokerage account is with Zerodha and it will cost you Rs. 300.

What is a brokerage fee?

A brokerage fee is basically a certain type of fee charged by any broker to carry out transactions for providing specialized services.

What is SIP in LIC?

SIP stands for Systematic Investment Planning wherein instead of paying a lump sum amount, a person can plan out his or her investment amount over regularly distributed installments.

What is the best brokerage account for beginners?

One of the best brokerage accounts for beginners is Zerodha.

What is the tax rate on a mutual fund?

Mutual funds are taxed based on the holding period and type of fund. Equity funds attract a Long-Term Capital Gain Tax of 10% on gains exceeding Rs. 1 lakh. Debt Mutual Funds are taxed at 20% if held for a period of more than 3 years with the benefit of Indexation. For a period below 3 years, the tax rate is as per the income tax slab.