Life Insurance Corporation (LIC), one of the most recognized and trusted brands in India that is associated with almost every household. Interestingly, it is also one of the major players in the mutual fund sector.
The LIC Mutual Fund was established on 20th April 1989 by LIC of India, with LIC of India as the main sponsor and was then known as Jeevan Bima Sahyog AMC Ltd. It commenced its business operations on 29th April 1994, with a sharp focus on investor wealth creation. In March 2011, following a joint venture agreement between LIC Mutual Fund and Nomura Asset Management Co. Ltd., it was renamed as LIC Nomura Mutual Fund Asset Management Company Ltd. In the JV, LIC held 45 per cent equity stake, and Nomura and LIC Housing Finance held 35 per cent and 20 per cent stake, respectively.
However, in 2016, Nomura Asset Management exited the JV, and the business was rebranded to LIC Mutual Fund. Following Nomura's exit, GIC Housing Finance Ltd. and Corporation Bank became the new partners in the JV with minority stakes. As of June 2019, LIC Mutual Fund's total asset under management stands at Rs. 15,902 crore, spread across 23 equity and debt mutual fund schemes.
The key features and benefits of the LIC Mutual Fund are as follows.
LIC Mutual Fund carries the legacy of its parent company, LIC, which is one of the pioneering organisations in India and is known for its trustworthiness and reliability. Therefore, mutual funds offered by LIC Mutual Funds enjoy the investor's interest and preference.
LIC Mutual Fund is the oldest mutual fund houses in India, with over 25 years of presence in the sector. It is one of the first few mutual fund houses after UTI and SBI MF, to enter the asset management business.
Further, its association with Nomura had helped to gain meaningful insights of the mutual fund business and fund management.
LIC Mutual Fund offers a wide variety of fund options to investors, both on equity and debt front. It covers all the important fund sections, which the investors usually vouch for like, Large & Midcap Fund, Multicap Fund, Children's Gift Fund, Tax Plan, ULIS, Thematic, etc.
It also offers Portfolio Management Services (PMS) to its customer across equity, debt, and hybrid asset class. Apart from Monthly and Quarterly SIP, it also provides Daily SIP feature to its investors.
The brand LIC is developed on excellent customer service and support, a legacy which LIC MF is taking forward. LIC MF offers extensive customer service support through its Toll-Free no. 1800 258 5678, social media channels, online support as well as offline support (through a rich network of branches).
| Fund Name (Direct Plan) | 1 yr Return (%) | 3 yr Return (%) | 5 yr Return (%) |
|---|---|---|---|
| LIC MF Tax Plan | 5.28 | 12.04 | 11.48 |
| LIC MF Large-cap Fund | 4.67 | 10.04 | 10.11 |
| LIC MF Large and Mid Cap Fund | 3.88 | 14.66 | - |
| LIC MF Banking and PSU Debt Fund | 11.19 | 8.57 | 8.18 |
| LIC MF Government Securities Fund | 16.91 | 9.52 | 10.39 |
How do we invest in LIC MF schemes?
Investors can invest directly through online by visiting LIC MF website or approach registered mutual fund distributors.
Does LIC MF have Direct Plan on their mutual fund schemes?
Yes, LIC MF provides Direct Plan on their mutual fund schemes. As per the SEBI circular dated 13th Sep 2012, it is mandatory for AMCs to provide Direct Plan on their MF schemes.
How do investors redeem their units of LIC MF schemes?
Investors can fully or partially redeem their investments in LIC mutual funds. An investor has to submit a redemption request along with the duly filled redemption requests form mentioning the number of units or the amount to be redeemed.
What proof does investor receive for investing in LIC MF?
Every unit holder is entitled to a statement of account of the units credited after every purchase. For investments made during the initial offer period, the investor will receive statements of account within ten business days after the closure of the offer.
Further, each unit-holder is entitled to an annual account statement after each fiscal year (31st March), containing details of investors opening unit balance as on April 1st of the prior year, transactions made during the year and closing balance of unit held as on 31st March.
Do LIC MF offers SIP/SWP facility to investors?
Yes, LIC MF offers both SIP and SWP facility to its investors. Investors can have a minimum monthly SIP of Rs. 1000 for equity and debt funds (Rs. 500 for ELSS), and in multiples of Re.1 thereafter.
Under Systematic Withdrawal Plan (SWP), investors can withdraw amounts from their scheme on a periodic basis. Investors can redeem a fixed sum or fixed unit from their investment, with a minimum of 50 units and multiple thereafter at a regular interval.
