LIC Mutual Fund

Equity schemes invest in stocks or shares of companies and they are also known as growth funds or stock funds. In this category, LIC Mutual Fund offers 8 schemes (6 open-ended and 2 close-ended). We have explained all of these schemes below:

• LIC MF Banking and Financial Services Fund
  • This is an open-ended equity scheme that concentrates its investments in equities of companies in the banking and financial services sector.
  • Scheme features: Benchmark IndexNifty Financial Services IndexMonthly Average Expense RatioAs on 1 May 2018, TER: Direct Plan – 1.44%, Regular Plan – 3.22%Investment OptionsGrowth and DividendMinimum InvestmentRs.5,000Entry LoadNot ApplicableExit Load1% exit load will apply for redemption or withdrawal before 1 year from unit allotment date. No exit load for withdrawal after 1 yearRiskometerHighFund ManagerMr. Saravana Kumar
  • Investment objective – To create capital growth for the investor by investing a significant part of its investment in equity and its related instruments of firms engaged in banking and financial services.
  • Ideal for – Investors who seek capital gains over a longer duration and who wish to invest in equity and its related securities of firms engaged in financial services and banking.
• LIC MF Multicap Fund – This is an open-ended equity scheme that invests in equities of large, mid, and small cap companies to achieve growth of capital.Scheme features:Benchmark IndexNifty 500 IndexMonthly Average Expense RatioAs on 1 May 2018, TER: Direct Plan – 1.95%, Regular Plan – 3.12%Investment OptionsGrowth and Dividend. The dividend option offers payout and reinvestment facilitiesMinimum InvestmentRs.5,000Entry LoadNot ApplicableExit Load1% exit load will apply if investor exits the scheme before 1 year from unit allotment date. No exit load for exit after 1 yearRiskometerModerately HighFund ManagerMr. Saravana Kumar
  • Investment objective – To offer capital appreciation to the investor by focusing its investments on equity and its associated instruments.
  • Ideal for – Investors who prefer to invest in stocks of large, mid and small cap companies and who wish to achieve capital growth over a long term. The scheme is also suitable for investors who seek current income.
• LIC MF Large Cap Fund – This is an open-ended equity scheme that mainly invests in equities of large cap companies and was previously known as Dhanasamriddhi.Scheme features:Benchmark IndexNifty 100 IndexMonthly Average Expense RatioAs on 1 May 2018, TER: Direct Plan – 1.86%, Regular Plan – 3.13%Investment OptionsGrowth and Dividend (Reinvestment and Payout)Minimum InvestmentRs.5,000Entry LoadNot ApplicableExit Load1% exit load will apply if investor exits the scheme before 1 year from unit allotment date. No exit load for exit after 1 yearRiskometerModerately HighFund ManagerMr. Sachin Relekar
  • Investment objective – To generate capital appreciation for the investor by concentrating the investments on equity and its associated instruments including derivatives, of large cap companies.
  • Ideal for – Investors who seek capital growth over a long term and who wish to invest in equities of large cap firms.
• LIC MF Infrastructure Fund – This is an open-ended equity scheme that invests in infrastructure and its allied sectors. This scheme was initially launched as a close-ended scheme in 2008 but later was opened for subscription with effect from 24 March 2011.Scheme features:Benchmark IndexNifty Infrastructure IndexMonthly Average Expense RatioAs on 1 May 2018, TER: Direct Plan – 1.47%, Regular Plan – 3.25%Investment OptionsGrowth and Dividend (Reinvestment and Payout)Minimum InvestmentRs.5,000Entry LoadNot ApplicableExit Load1% exit load will apply if investor exits the scheme before 1 year from unit allotment date. No exit load for exit after 1 yearRiskometerHighFund ManagerMr. Sachin Relekar
  • Investment objective – To produce capital appreciation for the investor by investing in equities of firms engaged in the infrastructure sector.
  • Ideal for – Investors who wish to grow their capital over a long term and have a high appetite for risk to invest in equities of infrastructure and its allied sectors.
• LIC MF Large & Mid Cap Fund – This is an open-ended scheme that invests in equities of both large and mid cap firms.Scheme features:Benchmark IndexNifty LargeMidcap 250 IndexMonthly Average Expense RatioAs on 1 May 2018, TER: Direct Plan – 0.58%, Regular Plan – 2.89%Investment OptionsGrowth and Dividend (Reinvestment and Payout)Minimum InvestmentRs.5,000Entry LoadNilExit Load1% exit load will apply if investor exits the scheme before 1 year from unit allotment date. No exit load for exit after 1 yearRiskometerModerately HighFund ManagerMr. Sachin Relekar
  • Investment objective – To create capital appreciation for the investor by investing in large and mid cap stocks.
  • Ideal for – Investors who wish to achieve capital gains and prefer investing in stocks of large and mid cap firms.
• LIC MF Tax Plan – This is an open-ended equity linked savings scheme that has a statutory lock-in period of 3 years and offers tax benefits to the investor. This scheme was previously known as the Dhan Tax Saver 1997 and the tax benefits offered are available under Section 80C of the Income Tax Act, 1961. The features of this scheme has been explained in the section ‘Tax Saving Plans by LIC Mutual Fund’.Scheme features:Benchmark IndexS&P BSE SensexMonthly Average Expense Ratio–Investment OptionsGrowth and DividendMinimum InvestmentRs.5,000Entry LoadNilExit LoadNilRiskometerHighFund ManagerMr. Ramnath Venkateswaran
  • LIC MF Diversified Equity Fund Series 1 and Series 2 – These schemes are close-ended equity schemes whose tenures will last for 1100 days from the unit allotment date.
  • Investment objective – To produce capital gains by investing primarily on equities of companies that constitute the S&P BSE 200 Index.
  • Ideal for – Investors who wish to achieve capital appreciation over a long term and have a high appetite for risk to invest in equity and its related securities that constitute the BSE 200 Index.
• LIC MF Rajiv Gandhi Equity Savings Scheme Series 2 and Series 3 – These 2 schemes (Series 2 and Series 3) are close-ended equity schemes whose duration is 3 years from the unit allotment date. The schemes invest in equity securities that are considered as eligible for Rajiv Gandhi Equity Savings Scheme (RGESS).Scheme features:Benchmark IndexS&P BSE 100 IndexMonthly Average Expense Ratio–Investment OptionsGrowth and DividendMinimum InvestmentRs.5,000Entry LoadNilExit LoadNilRiskometerHighFund ManagerMr. Ramnath Venkateswaran
  • Investment objective – To produce capital gains for the investor by investing in equities eligible for RGESS and sometimes may also invest in cash and money market instruments.
  • Ideal for – Investors who seek capital appreciation over long term and have a high appetite for risk.

Debt funds invest in a variety of instruments like corporate bonds, treasury bills, government securities, etc., to generate regular income for the investor. In this category, LIC Mutual Fund offers 8 schemes (5 open-ended and 3 interval), all of which have been described below:

• LIC MF Bond Fund – This is an open-ended medium term debt scheme that invests in debt and money market instruments.Scheme features:Benchmark IndexCRISIL Composite Bond Fund IndexMonthly Average Expense Ratio–Investment OptionsGrowth and Dividend (Payout and Reinvestment)Minimum InvestmentRs.5,000Entry LoadNilExit Load1% exit load will apply if investor exits the scheme before 1 year from unit allotment date. No exit load for exit after 1 yearRiskometerModerateFund ManagerMr. Marzban Irani
  • Investment objective – To generate attractive capital gains for the investor by investing in a portfolio whose Macaulay Duration is between 4 years and 7 years.
  • Ideal for – Investors who wish to generate income over medium to long term through investment in debt and money market securities.
• LIC MF Banking & PSU Debt Fund – This is an open-ended debt scheme that invests in debt securities of banks, Public Sector Undertakings (PSUs), Public Financial Institutions (PFIs), and municipal bonds.Scheme features:Benchmark IndexCRISIL Short Term Bond Fund IndexMonthly Average Expense Ratio–Investment OptionsGrowth and Dividend (Payout and Reinvestment)Minimum InvestmentRs.5,000Entry LoadNilExit LoadNilRiskometerModerateFund ManagerMr. Marzban Irani
  • Investment objective – To give investors an opportunity to grow their capital by investing in high quality debt and money market instruments issued by financial institutions, banks, PSUs, and municipal bonds.
  • Ideal for – Investors who wish to generate regular income as well as grow their capital over medium term and who wish to invest in safe securities such as debt and money market instruments.
• LIC MF G-Sec Fund – This is an open-ended debt scheme that invests in government securities across maturity. The scheme concentrates its investments in securities that are issued by the central/state government and also in securities guaranteed by the central/state government.Scheme features:Benchmark IndexI-Sec Composite IndexMonthly Average Expense Ratio–Investment OptionsGrowth, Dividend, and PFMinimum InvestmentRs.10,000Entry LoadNilExit Load0.25% exit load will apply if the investor exits before 30 days from unit allotment dateRiskometerModerateFund ManagerMr. Marzban Irani
  • Investment objective – To create risk-free credit and optimal returns for the investor by investing in sovereign securities issued by state/central government.
  • Ideal for – Investors who wish to grow their investment over a long term and who wish to invest in securities issued by the central and state government.
• LIC MF Savings Fund – This is an open-ended low duration debt scheme that invests in securities whose Macaulay Duration of the portfolio is between 6 months and 12 months.Scheme features:Benchmark IndexCRISIL Low Duration Debt IndexMonthly Average Expense Ratio–Investment OptionsGrowth and Dividend (Payout and Reinvestment)Minimum InvestmentRs.5,000Entry LoadNilExit LoadNilRiskometerModerateFund ManagerMr. Rahul Singh
  • Investment objective – To generate income for the investor by focusing its investments on superior quality debt instruments.
  • Ideal for – Investors who are looking for a regular income while also achieving capital appreciation.
• LIC MF Liquid Fund – This is an open-ended liquid scheme that judiciously invests in superior quality debt securities and money market instruments to produce favourable returns on the capital invested.Scheme features:Benchmark IndexCRISIL Liquid Fund IndexMonthly Average Expense Ratio–Investment OptionsGrowth and Dividend (Payout and Reinvestment)Minimum InvestmentRs.5,000Entry LoadNilExit LoadNilRiskometerLowFund ManagerMr. Rahul Singh
  • Investment objective – To generate returns that are reasonable, low risk, and offer high liquidity by investing in quality debt instruments and money market securities.
  • Ideal for – Investors who wish to have a regular income and prefer investing in low risk securities such as debt or money market instruments with maturity of up to 91 days.
• LIC MF Interval Fund Quarterly Plan Series 1 and Series 2 – There are 2 schemes in this category and they are both debt-oriented interval schemes that focuses its investments on debt securities and money market instruments.Scheme features:Benchmark IndexCRISIL Liquid Fund IndexMonthly Average Expense Ratio–Investment OptionsGrowth and Dividend (Payout and ReinvestmentMinimum InvestmentRs.10,000Entry LoadNilExit LoadNilRiskometerModerately LowFund ManagerMr. Marzban Irani
  • Investment objective – To give investors an opportunity to grow their capital and provide them income by investing in money market and debt instruments.
  • Ideal for – Investors who wish to receive regular income and who have a low appetite for risk.
• LIC MF Interval Fund Annual Plan – This is a debt-oriented interval scheme that invests in money market instruments and debt securities.Scheme features:Benchmark IndexCRISIL Liquid Fund IndexMonthly Average Expense Ratio–Investment OptionsGrowth and Dividend (Payout and Reinvestment)Minimum InvestmentRs.10,000Entry LoadNilExit LoadNilRiskometerModerately LowFund ManagerMr. Marzban Irani
  • Investment objective – To produce income and grow the capital for the investor by investing in debt and money market securities.
  • Ideal for – Investors who wish to have a regular income from their investments over a short term and who prefer to invest in low risk instruments such as debt instruments, money market instruments, etc.
• LIC MF Interval Fund Monthly Plan – This is a debt-oriented interval scheme that invests in money market instruments and debt securities to fetch favourable returns for the investor.Scheme features:Benchmark IndexCRISIL Liquid Fund IndexMonthly Average Expense Ratio–Investment OptionsGrowth and Dividend (Payout and Reinvestment)Minimum InvestmentRs.10,000Entry LoadNilExit LoadNilRiskometerModerately LowFund ManagerMr. Marzban Irani
  • Investment objective – To create capital growth and income for the investor by allocating a major part of its investments to low risk securities such as money market instruments and debt securities.
  • Ideal for – Investors who wish to receive regular income over a short term and have a low appetite for risk.

Mutual funds that invest in a mix of equity, debt, and fixed income instruments are termed as hybrid funds. LIC Mutual Fund Offers 5 schemes (3 open-ended and 2 close-ended) in this category all of which have been described below:

• LIC MF Equity Hybrid Fund – This is an open-ended hybrid scheme that was previously known as Dhanasahayog and the scheme invests mainly in equity and its associated securities. A small portion is also invested in debt and money market instruments.Scheme features:Benchmark IndexCRISIL Hybrid 35+65 – Aggressive IndexMonthly Average Expense Ratio–Investment OptionsGrowth and Dividend (Payout and Reinvestment)Minimum InvestmentRs.5,000Entry LoadNilExit LoadIf the investor exits before 1 year from unit allotment date, for 10% of the investment there will be no exit load. For the remaining investment, a 1% load will be charged. No exit load is applicable on exit after 1 yearRiskometerModerately HighFund ManagerMr. Saravana Kumar (equity portfolio) and Mr. Marzban Irani (debt portfolio)
  • Investment objective – To offer regular returns and capital gains to the investor by investing in a mix of debt and equity instruments.
  • Ideal for – Investors who seek capital appreciation and regular income over a long term.
• LIC MF Debt Hybrid Fund – This is an open-ended hybrid scheme that was formerly known as Dhanavarsha 12 and focuses its investments on debt securities. Some portion of the investment is also allocated to equity instruments.Scheme features:Benchmark IndexCRISIL MIP Blended IndexMonthly Average Expense Ratio–Investment OptionsDividendMinimum InvestmentRs.5,000Entry LoadNilExit Load1% exit load is applicable if the investor exits before 1 year from unit allotment date. No exit load is applicable for exit after 1 yearRiskometerModerateFund ManagerMr. Marzban Irani (debt portfolio) and Mr. Saravana Kumar (equity portfolio)
  • Investment objective – To produce regular income for the investor by investing primarily in superior quality debt and money market securities. The scheme also allocates a percentage of its investments on equity instruments.
  • Ideal for – Investors who wish to achieve capital gains and receive current income over a long term and who prefer investing in securities that have marginal exposure to equity, such as debt securities.
• LIC MF Unit Linked Insurance Scheme – This scheme was previously known as Dhanraksha-89 and is an open-ended insurance-linked tax savings scheme that offers tax benefits to the investor under Section 80C of the Income Tax Act, 1961. The scheme invests in a diversified portfolio consisting of equity and fixed income securities. The features of the scheme has been explained in the ‘Tax Saving Mutual Funds from LIC Mutual Fund’ section.Scheme features:Benchmark IndexCRISIL MIP Blended IndexMonthly Average Expense Ratio–Investment OptionsGrowth and Dividend (Reinvestment and PayoutMinimum InvestmentRs.5,000Entry LoadNilExit LoadNilRiskometerModerately HighFund ManagerMr. Marzban Irani (debt portfolio) and Mr. Sachin Relekar (equity portfolio)
  • LIC MF Dual Advantage Fund (Series 1, 2, and 3) – There are 3 schemes in this category (Series 1, 2 and 3) and all are close-ended income schemes. New Fund Offer (NFO) for Series 1 was open for subscription from 22 June 2015 to 6 July 2015 while Series 2 was open for subscription from 10 September 2015 to 24 September 2015. Series 3 was open for subscription from 28 October 2015 to 10 November 2015.
  • Investment objective – To produce capital returns and growth for the investor by investing in a mixed portfolio of equity, debt, and money market instruments.
  • Ideal for – Investors who seek capital growth with regular income over medium to long term.
• LIC MF Capital Protection Oriented Fund (Series 1,2,3, and 4) – There are 4 schemes in this category – Series 1, 2, 3, and 4. All these schemes are close-ended capital protection-oriented schemes and predominantly invest in debt and money market securities but also invest a small portion (around 15%) in options premium, equity, and its associated securities.Scheme features:Benchmark IndexCRISIL MIP Blended IndexMonthly Average Expense Ratio–Investment OptionsGrowth and DividendMinimum InvestmentRs.5,000Entry LoadNilExit LoadNilRiskometerModerately HighFund ManagerMr. Marzban Irani (debt portfolio) and Mr. Sachin Relekar (equity portfolio)
  • Investment objective – To accomplish capital protection for the customer through investment in fixed income instruments that matures on or before the term of the scheme. Also, by investing in equity and its related securities, the scheme seeks capital growth for the investor.
  • Ideal for – Investors who wish to achieve capital growth and wish to generate income over a medium or long term.

• LIC MF Children’s Gift Fund – This is an open-ended scheme meant for investment for children and has a lock-in period of 5 years or till the child attains 18 years of age.Scheme features:Benchmark IndexCRISIL Hybrid 35 + 65 – Aggressive IndexMonthly Average Expense RatioAs on 1 May 2018, TER: Direct Plan – 1.71%, Regular Plan – 3.04%Investment OptionsGrowth-orientedMinimum InvestmentRs.5,000Entry LoadNilExit LoadNilRiskometerModerately HighFund ManagerMr. Saravana Kumar (equity portfolio) and Mr. Marzban Irani (debt portfolio)
  • Investment objective – To produce capital gains and long-term growth opportunity for the investor through investment in a mix of equity, debt, fixed income, and equity-related securities.
  • Ideal for – Investors who wish to achieve capital appreciation to meet the future financial needs of their children by investing in a mix of stocks and fixed income instruments.

Mutual funds that are listed and traded on stock exchanges just like shares, are known as Exchange-Traded Funds (ETF). Units of an ETF can be purchased and sold at current market prices during market hours on a real time basis. ETFs offer the benefits of flexibility, protecting investors against inflows and outflows over long and short term, and have the ability to put limit orders.

Index funds on the other hand, invest in an index and mimic its performance. These kinds of funds are subject to tracking errors which is the deviation of the returns by the fund from the benchmark it tracks.

In the ETF and Index Funds category, LIC Mutual Fund offers 5 schemes:

1. LIC MF Exchange Traded Fund – Nifty 100
2. LIC MF Exchange Traded Fund – Nifty 50
3. LIC MF Exchange Traded Fund – Sensex
4. LIC MF G-Sec Long Term Exchange Traded Fund
5. LIC MF Index Fund Nifty
6. LIC MF Index Fund Sensex

The investment objective of all the above funds is the same – to offer returns that commensurate to the total returns provided by the benchmark index it tracks. ETFs and Index funds are ideal for investors who wish to invest their capital over a long term and in securities that comprise the particular index.

Investors who wish to save tax while also achieving capital gains can invest in the schemes mentioned below:

1. LIC MF Tax Plan
2. LIC MF Unit Linked Insurance Scheme

Both the schemes have been explained below:

• LIC MF Tax PlanInvestment objective – To generate capital gains for the customer and offering tax benefits at the same time by investing in equity and its related instruments.Ideal for – Investors who wish to enjoy tax benefits while also achieving capital appreciation.Scheme features:Benchmark IndexNifty 500 IndexMonthly Average Expense RatioAs on 1 May 2018, TER: Direct Plan – 1.67%, Regular Plan – 2.95%Investment OptionsGrowth and Dividend (Reinvestment and Payout)Minimum InvestmentRs.500Entry LoadNilExit LoadNilRiskometerModerately HighFund ManagerMr. Sachin Relekar
• LIC MF Unit Linked Insurance SchemeInvestment objective – To offer capital appreciation, tax benefits, free life and accident insurance to the investor.Ideal for – Investors who wish to receive current income while also growing their capital over a long term.Scheme features:Benchmark IndexCRISIL Hybrid 35 + 65 Aggressive IndexMonthly Average Expense RatioAs on 1 May 2018, TER: Direct Plan – 1.49%, Regular Plan – 2.64%Investment OptionsSingle Premium and Regular ContributionMinimum InvestmentRs.10,000Entry LoadNilExit LoadNot ApplicableRiskometerModerately HighFund ManagerMr. Sachin Relekar (equity portfolio) and Mr. Marzban Irani (debt portfolio)

The below-mentioned individuals/entities are eligible to subscribe to the units of LIC Mutual Fund:

• Adult individuals residing in India
• Minors can invest through a parent or a legal guardian
• Karta of Hindu Undivided Family (HUF)
• Limited Liability Partnerships (LLPs) and Partnership Firms
• Firms, corporate bodies, PSUs (Public Sector Undertakings), Co-operative societies registered under the Co-operative Societies Act, 1912, and Societies registered under the Societies Registration Act, 1860
• Religious and charitable trusts, private trusts, and Wakfs or endowments of private trusts
• Financial institutions and banks
• Mutual funds/alternative investment funds registered with SEBI
• Foreign Portfolio Investors (FPIs) and Foreign Institutional Investors (FIIs) registered with SEBI
• Persons of Indian Origin (PIOs), Non-Resident Indians (NRIs), and Overseas Citizens of India (OCI) on repatriation or non-repatriation basis
• Council of Scientific and Industrial Research, India
• Air Force, Navy, Army, and other paramilitary bodies
• Other schemes of LIC Mutual Fund subject to SEBI regulations
• Reserve Bank of India (RBI) and Government of India approved Bilateral Development Corporation Agencies/Multilateral Financial Institutions/Corporate Bodies incorporated outside India

To invest in LIC Mutual Fund, you can either approach the fund house directly, get in touch with the empanelled distributors, or invest through the online mode. To invest online, the investor needs to follow the below-given steps:

• Visit the official site of LIC Mutual Fund (www.licmf.com).
• On the topmost right-hand corner, click on the ‘Invest Online’ button.
• If the investor is investing for the first time, he/she needs to enter the PAN and click on ‘Submit’.
• The investor then needs to tick the relevant boxes and click on the ‘I Agree’ button to proceed.
• On the next page, the investor will be required to fill in the necessary information to continue further.
• Once the information is filled up and submitted, the investor is ready to invest in the schemes of LIC Mutual Fund.

• Brand value – LIC Mutual Fund is an associate of Life Insurance Corporation (LIC) of India which is India’s most trusted insurance brand. With a background like this, there can be no doubt about its reliability and trustworthiness.
• Rich experience – With more than 2 decades of experience in the mutual fund segment, LIC Mutual Fund can boast of its expertise in the domain.
• Broad network – LIC has a huge network of branch offices spread across the country which makes it accessible for the investors.
• Tax benefits – Many schemes of LIC Mutual Fund such as LIC MF Tax Plan and LIC MF Unit Linked Insurance Scheme lets investors enjoy tax benefits.
• Excellent customer assistance – Superior quality customer care is delivered to investors by a team of professionals.

GST rate of 18% applicable for all financial services effective July 1, 2017.