LIC Mutual Fund offers an incredible opportunity for investors who want to build wealth over time with minimal monthly investment. By investing just Rs 5,000 every month, you could potentially earn more than Rs 1.75 crore over 30 years. LIC Mutual Fund is a great option for individuals looking for disciplined, long-term investment in India’s stock market.
How LIC Mutual Fund Works
LIC Mutual Fund is backed by the Life Insurance Corporation of India, the country’s largest insurance provider. Currently, LIC Mutual Fund manages assets worth Rs 30,170.82 crore. With over 26 schemes available, LIC Mutual Fund offers a variety of options tailored to investors with different risk profiles.
For those looking for equity-based growth, LIC Mutual Fund has invested about 90.06% of its total assets in the Indian stock market. The majority of these investments (87.62%) are in large-cap stocks, which are generally more stable, while 2.43% is allocated to mid-cap stocks, offering higher growth potential.
The fund has shown impressive performance in recent years, registering a Compound Annual Growth Rate (CAGR) of 14.56% over the last three years. This makes it a preferred choice for long-term investors who aim for growth.
Why Choose LIC Mutual Fund?
Here are a few reasons why LIC Mutual Fund is a great option for investors:
- Diverse Investment Options: LIC offers a wide range of mutual funds, including large-cap, mid-cap, infrastructure, and gold ETFs. This ensures that investors can choose the right option based on their risk tolerance and financial goals.
- Tax Benefits: LIC Mutual Fund also provides tax-saving options under the ELSS (Equity Linked Savings Scheme) category, allowing investors to save taxes while growing their wealth.
- Strong Track Record: With a consistent performance over the years, LIC Mutual Fund has built a reputation as a trusted investment option in India.
How to Invest in LIC Mutual Fund
To start investing in LIC Mutual Fund, you will need to complete a few basic steps. Here’s a simple guide to getting started:
- Consult a Financial Advisor: Before you invest, it’s always a good idea to seek advice from a mutual fund expert. They can help you select the right fund based on your goals and risk tolerance.
- Prepare the Required Documents: You’ll need some documents for verification such as Aadhaar card, PAN card, voter ID, or passport for personal identification. For address proof, documents like a ration card or electricity bill will be required.
- Choose Your Scheme and Tenure: Based on your financial goals, choose the investment plan that suits you best. Decide on the amount you wish to invest and the tenure of your investment. You can invest through a Systematic Investment Plan (SIP) for consistent growth.
- Start Your SIP: Once the documents are verified and the plan is selected, you can start your monthly SIP. With the power of compounding, your monthly investments can grow significantly over time.
How Rs 5,000 Monthly Can Grow Into Rs 1.75 Crore
By investing Rs 5,000 per month in LIC Mutual Fund for 30 years, you can build significant wealth thanks to compound growth. Assuming an average annual return of 12%, here’s how your investment can grow:
- Annual Investment: Rs 5,000 per month means Rs 60,000 will be invested in a year.
- Total Investment Over 30 Years: Rs 18,00,000 will be invested over 30 years.
- Estimated Returns: With an estimated 12% return compounded annually, the value of your investment will grow to approximately Rs 1,58,49,569.
- Total Amount: Adding the invested amount of Rs 18,00,000, the total value of your portfolio will be around Rs 1,76,49,569—more than Rs 1.75 crore.
Is It the Right Time to Invest?
LIC Mutual Fund provides an excellent opportunity for long-term investors looking to grow their wealth systematically. However, mutual fund investments are subject to market risks, and it’s important to consult a financial expert before making any decisions. By planning your investments carefully and choosing the right fund, you can take advantage of the growth potential in India’s stock market.
Investing in LIC Mutual Fund not only helps in wealth creation but also brings the added benefits of diversification and tax savings. With disciplined monthly investments, you can achieve your long-term financial goals efficiently.
