The LIC Mutual Fund was incorporated in 1994 and started operating in the same year. Relatively, the fund is not large-sized, but it is certainly very stable and capable of providing constant returns over the past few years.
Its great USP is that despite its small size, the LIC Mutual Fund provides a plethora of different investment schemes.
The total assets under management of the LIC Mutual Fund have a value of 16,906 Cr as of 1 March 2021. The fund provides options for wealth creation, tax saving, regular savings, and the education of your children through the different investment schemes that it provides. These are divided into equity, debt, hybrid, ETF and index, and solution-oriented funds.
The primary shareholder of the LIC Mutual Fund is the Life Insurance Corporation of India. LIC is a government-owned insurance and investment company that is the largest insurance provider in India.
It was established by an act of parliament in 1956, with the merger of 245 state-owned life insurance companies. Life Insurance Corporation has more than 29 crore policyholders and a cumulative life fund of over 28 lakh cr.
In 2020, the Government of India announced that an initial public offering would be conducted for LIC in FY22. The executive board of the LIC contains the chairperson M.R. Kumar and managing directors Vipin Anand, TC Suseel Kumar, Mukesh Kumar Gupta, and Raj Kumar.
The LIC offers 7 equity schemes, 8 debt schemes, 4 hybrid schemes, 8 ETF and index schemes, and 1 solution-oriented scheme. The CEO of the company is Dinesh Pangtey, and there are nine members on its board of directors.
The AMC is named LIC Mutual DUnf Asset Management Ltd. It is owned 45% by the Life Insurance Corporation of India, 39.30% by LIC Housing Finance Ltd., 11.70% by GIC Housing Finance Ltd., and 4.00% by Union Bank of India.
As far as the trustee company is concerned, it is owned 49% by the Life Insurance Corporation of India, 35.30% by LIC Housing Finance Ltd., and 15.70% by GIC Housing Finance Ltd.
Important information
| Name of the AMC | LIC Mutual Fund |
| Incorporation Date | 20 April 1994 |
| Sponsors | Life Insurance Corporation of India |
| Trustee | LIC Mutual Fund Trustee Pvt. Ltd. |
| Board of Directors | M.R. Kumar Kailash Kumar Bang Satish K. Kamat Sanjay A. Muthal Vijay Sharma Neera Saxena Raghunandan Maluste Y. Viswanatha Gowd Dinesh Pangtey |
| CEO | Dinesh Pangtey |
| CIO | Saravana Kumar A |
| AUM | Rs. 16906 Cr as of 1 March 2021 |
| Auditors | S R Batlboi LLP |
| Custodians | Standard Chartered Bank |
| Address | 4th Floor, Industrial Assurance Building Opp. Churchgate Station, Mumbai 400020 |
| Contact Number | 022-66016000 |
| cs.co@licmf.com |
Best LIC Mutual Fund Schemes
While LIC Mutual Fund is relatively moderate in size, it offers various different schemes that have historically performed well in the market. Let us look at the ten best among these
1. LIC Large & Mid Cap Fund Direct
The LIC Large & Mid Cap Fund has been among the successful funds in the Indian market over the past few years. It has a Value Research rating of 4, and investors have realized returns of over 33% in the past year and almost 19% in the last five years, as of 1 March 2021.
| Minimum Investment | INR 5000 |
| Minimum Additional Investment | INR 500 |
| Minimum SIP Investment | INR 1000 |
| Minimum Withdrawal | INR 500 |
| Exit Load | 1% for redemption within 365 days for units more than 12% of investment; Nil for redemption after 365 days |
| Return Since Inception: | 13.00% |
| Assets | INR 1028 Crore |
| Expense Ratio | 0.84% |
2. LIC Index Sensex Fund Direct
The LIC Index Sensex Fund is rated 4 by Value Research and is among the best-performing equity funds in the LIC Mutual Fund. It has an AUM of 34 Crore as of 1 March 2021 and has 44.8% over the last year and nearly 16% over the last five years.
| Minimum Investment | INR 5000 |
| Minimum Additional Investment | INR 500 |
| Minimum SIP Investment | INR 1000 |
| Minimum Withdrawal | INR 500 |
| Exit Load | 0.25% for redemption within 7 days; Nil for redemption after 7 days |
| Return Since Inception: | 11.82% |
| Assets | INR 34 Crore |
| Expense Ratio | 0.57% |
3. LIC Index Nifty Fund Direct
The LIC Index Nifty Fund is an equity fund that has an AUM of 43 Crore as of 1 March 2021. It carries a Value Research rating of 3 and has returned more than 15% in the last five years.
| Minimum Investment | INR 5000 |
| Minimum Additional Investment | INR 500 |
| Minimum SIP Investment | INR 1000 |
| Minimum Withdrawal | INR 500 |
| Exit Load | 0.25% for redemption within 7 days; Nil for redemption after 7 days |
| Return Since Inception: | 11.67% |
| Assets | INR 43 Crore |
| Expense Ratio | 0.48% |
4. LIC Large Cap Fund Direct
The LIC Large Cap Fund has been an extremely successful fund, giving it a Value Research rating of 3. Though it is a comparatively small fund with an AUM of 502 crores, it has returned 15% in the last five years as of 1 March 2021.
| Minimum Investment | INR 5000 |
| Minimum Additional Investment | INR 500 |
| Minimum SIP Investment | INR 1000 |
| Minimum Withdrawal | INR 500 |
| Exit Load | 1% for redemption within 365 days for units more than 12% of investment; Nil for redemption after 365 days |
| Return Since Inception: | 12.74% |
| Assets | INR 502 Crore |
| Expense Ratio | 1.07% |
5. LIC Infrastructure Fund Direct
The LIC Infrastructure Fund is a high-performance equity fund that has among the highest returns for any fund in the LIC Mutual Fund. Since its inception, it has returned over 9% and has accumulated an AUM of over 60 crores as of 1 March 2021.
| Minimum Investment | INR 5000 |
| Minimum Additional Investment | INR 500 |
| Minimum SIP Investment | INR 1000 |
| Minimum Withdrawal | INR 500 |
| Exit Load | 1% for redemption within 365 days for units more than 12% of investment; Nil for redemption after 365 days |
| Return Since Inception: | 9.78% |
| Assets | INR 62 Crore |
| Expense Ratio | 1.22% |
6. LIC Banking & Financial Services Fund Direct
The LIC Banking & Financial Services Fund invests exclusively in Banks and the Finance sector. It has been able to return nearly 13% in the last five years as of 1 March 2021.
| Minimum Investment | INR 5000 |
| Minimum Additional Investment | INR 500 |
| Minimum SIP Investment | INR 1000 |
| Minimum Withdrawal | INR 500 |
| Exit Load | 1% for redemption within 365 days for units more than 12% of investment; Nil for redemption after 365 days |
| Return Since Inception: | 4.49% |
| Assets | INR 58 Crore |
| Expense Ratio | 1.49% |
7. LIC Flexi cap Fund Direct
The LIC Flexi Cap Fund is another equity fund that has performed rather well since its inception and has had a constant rate of return of over 12% a year over the last 5 years, as of 1 March 2021.
| Minimum Investment | INR 5000 |
| Minimum Additional Investment | INR 500 |
| Minimum SIP Investment | INR 1000 |
| Minimum Withdrawal | INR 500 |
| Exit Load | 1% for redemption within 365 days for units more than 12% of investment; Nil for redemption after 365 days |
| Return Since Inception: | 9.75% |
| Assets | INR 359 Crore |
| Expense Ratio | 1.67% |
8. LIC MF Tax Plan
The LIC MF Tax Plan has an AUM of nearly 335 Crore as of 1 March 2021. It has had a constant annual rate of return that has been over 9% since its inception.
| Minimum Investment | INR 500 |
| Minimum Additional Investment | INR 500 |
| Minimum SIP Investment | INR 1000 |
| Minimum Withdrawal | INR 500 |
| Exit Load | Nil |
| Return Since Inception: | 13.90% |
| Assets | INR 335 Crore |
| Expense Ratio | 1.29% |
9. LIC Equity Hybrid Fund
The LIC Equity Hybrid Fund is a hybrid fund with an AUM of nearly 440 crore as of 1 March 2021. Its rate of return has been over 9% annually for nearly all of its existence.
| Minimum Investment | INR 5000 |
| Minimum Additional Investment | INR 500 |
| Minimum SIP Investment | INR 1000 |
| Minimum Withdrawal | INR 500 |
| Exit Load | 1% for redemption within 365 days for units more than 12% of investment; Nil for redemption after 365 days |
| Return Since Inception: | 9.75% |
| Assets | INR 435 Crore |
| Expense Ratio | 1.38% |
10. LIC Debt Hybrid Fund
The LIC Debt Hybrid Fund is a relatively new offering from the LIC Mutual Fund and has provided a handsome rate of return of over 8% since its inception as of 1 March 2021. It has an AUM of over 80 crores.
| Minimum Investment | INR 5000 |
| Minimum Additional Investment | INR 500 |
| Minimum SIP Investment | INR 1000 |
| Minimum Withdrawal | INR 500 |
| Exit Load | 1% for redemption within 365 days for units more than 10% of investment; Nil for redemption after 365 days |
| Return Since Inception: | 8.09% |
| Assets | INR 80 Crore |
| Expense Ratio | 1.50% |
How can you invest in LIC Mutual Fund via EduFund?
It is important to secure your children’s education, especially if you want to send them abroad. Saving money through schemes offered by LIC can be a great option if you are looking for a long-term investment. Here is how you can invest in LIC Mutual Fund using EduFund.
- Download the EduFund app from the App Store or the Google Play Store.
- Create an account on EduFund.
- You will be asked for certain information about your ambitions for the education of your child. You can choose the country that you want to send your child to, whether you want to send your child for bachelor’s, master’s, or doctoral studies, and what type of subject you would like your child to study while abroad.
- On the next page, you can select a rank bracket that you would like your college to lie in. You can also choose the kind of city that you want the college to be in.
- As per the entered information, you will receive a list of colleges that match your criteria. There will also be a list of the mean tuition fees of these colleges for your selected major.
- You can now choose the scheme of the LIC Mutual Fund that you want to invest in. As you browse through schemes, you will also be provided with the duration required to accumulate the amount of money that was previously calculated as required for your child’s education.
- EduFund accepts payment by all legitimate methods of transaction.
- Using the EduFund app, you can continue to track the performance of several different schemes, including the ones you have invested in.
- EduFund also put you in contact with affiliated education counselors who have years and years of experience in the field of foreign education. They can help allay your doubts regarding majors, experience abroad, as well as financial matters.
Leading fund managers at LIC Mutual Fund
Once you have invested your money in a mutual fund scheme, its fate is in the hands of the managers of the schemes.
The importance of fund managers in a mutual fund can never be understated. Before investing in a mutual fund scheme, it is essential that you look at the performance of the scheme over the past few years and whether it is capable of providing you with the kind of returns that you desire.
However, at the same time, it is also essential to take a quick glance at the performance of the manager of the mutual fund that you are looking to invest in.
The performance of other mutual funds of the manager, the qualifications and experience of the manager are all considerations that must be kept in mind when you make a decision to invest your hard-earned money.
LIC Mutual Fund has some very experienced managers with different professional and educational backgrounds. Together, they form a really competitive team that is capable of taking the value of your money to new heights. Let us take a look at the profiles of the fund managers at LIC Mutual Fund.
1. Yogesh Patil
Mr. Yogesh Patil has nearly two decades of experience behind him and has managed some of the most stable schemes that have been provided by LIC over the years.
Mr. Yogesh Patil earned his Master of Business Administration degree from Symbiosis Institute of Business Administration in Pune.
He worked at the Sahara Mutual Fund as a research analyst in equity for around three years, during which he was specifically involved in tracking the cement, power, capital goods, construction, and metal sectors.
He also managed the Sahara Blue Chip PMS Fund. He was then a part of Canara Robeco Asset Management Company Ltd. for nine years. He joined as a senior analyst in equity but was later made a senior fund manager.
As a fund manager, he was in charge of the Canara Robeco Infrastructure Fund and the Canara Robeco Tax Saver Fund. Under his management, the Canara Robeco Infrastructure Fund was ranked the foremost infrastructure equity fund by CRISIL for multiple quarters. Mr. Patil joined LIC Mutual Fund as a Fund Manager in 2018.
At LIC Mutual Fund, Mr. Yogesh Patil manages schemes such as LIC Multicap Fund, LIC Equity Hybrid Fund, and LIC BFSI Fund.
The LIC Mutual Fund Large Cap Fund Direct has returned a CAGR of over 14% under his management between 2018 and 2021. The LIC Mutual Fund Large and Mid Cap Fund Direct have returned more than 13% over the same period of time. Mr. Patil has an AUM of over 3000 Cr as of 1 March 2021.
2 Ritu Modi
Ms. Ritu Modi is the fund manager for several actively and passively managed schemes at LIC Mutual Fund. She has more than a decade of experience both as a research analyst and as a fund manager.
Ms. Ritu Modi completed her Bachelor of Commerce degree from Mulund College of Commerce in Mumbai. She later went on to earn her Master of Business Administration degree in finance from the University of Mumbai. She was a Research Analyst on Institutional Inequities at Ambit Capital for seven years.
Here, she specifically researched the Indian auto and auto components sectors. She also focused on sectors such as metals and mining, cement, ports & logistics, and healthcare. After Ambit Capital, Ms. Modi joined LIC Mutual Fund in 2018.
As a Research Analyst, She focused on sectors like consumer staples, discretionary, retail, auto, and auto ancillary. Since 2019, Ms. Ritu Modi has been a find manager at LIC Mutual Fund.
Ms. Modi is a co-manager in actively managed funds and a fund manager in passively managed funds. She has an AUM of 925 Cr as of 1 March 2021. Under her joint management, the LIC Mutual Fund Index Sensex Fund Direct has grown at a CAGR of over 16% between 2018 and 2021.
The LIC Mutual Fund Index Nifty Fund Direct has appreciated by more than 14.5%, while the LIC Mutual Fund Large Cap Fund Direct has appreciated more than 14% in this time.
3. Marzban Irani
Mr. Marzban Irani is one of the most experienced fund managers at LIC Mutual Fund. He has well over two decades of experience and has served in leadership roles in several different asset management companies. He is currently the Chief Investment Officer for Debt at LIC Asset Management Company.
Mr. Marzban Irani earned his Bachelor of Commerce (Honours) degree from Mumbai University and his Post Graduate Diploma in Business Management from Chetna’s Institute of Management and Research, Mumbai.
He was then the Fund Manager for Fixed Income at Tata Asset Management Company for seven years. He then served as the Fund Manager of Fixed Income at Mirae Asset Global Investment Management India Pvt. Ltd for over two years, before moving on to PNB MetLife India Insurance as Senior Fund Manager for Fixed Income.
Subsequently, Mr. Irani joined Tata Asset Management as the Vice President for Fixed Income. He has also been associated with DSP Investment Managers. Mr. Irani joined the LIC Mutual Fund as the CIO for Debt in 2016.
Mr. Marzban Irani manages several debt schemes and has an AUM of over 4400 Cr as of 1 March 2021. Under his management, the LIC Mutual Fund Government Securities Fund Direct has yielded over 10% returns annually between 2018 and 2021. The LIC Mutual Fund Banking and PSU Debt Fund Direct have also returned a CAGR of more than 8% at this time.
4. Sanjay Pawar
Mr. Sanjay Pawar has more than 15 years of experience across various roles in the finance industry.
Mr. Sanjay Pawar earned his Bachelor of Commerce degree from the University of Mumbai. Posy this, he went on to study at the Bharati Vidyapeeth’s Institute of Management Studies & Research, where he completed a Master of Business Administration degree in finance and financial management services.
He was a Corporate Bond Dealer for ICAP before joining CRISIL as a Senior Research Analyst in Fixed Income Instruments. He was then an Assistant Team Manager at Edelweiss Securities Ltd. for four years.
Subsequently, Mr. Pawar joined Taurus Mutual Funds as a Fixed Income Dealer. He then joined LIC Mutual Fund as a Senior Dealer in Fixed Income and served in the position for two years before becoming a Fund Manager for Fixed Income.
Mr. Sanjay Pawar manages the LIC Mutual Fund Short Term Debt Fund Direct with an AUM of 680 Cr as of 1 March 2021. In 2020, the scheme provided returns of around 7%.
5. Karan Doshi
Mr. Karan Doshi has experience of eight years and has been with LIC since 2019. He completed his Bachelor of Engineering degree in Electronics and Telecommunication Engineering from K J Somaiya Institute of Engineering and Information Technology, Mumbai, and his Master of Business Administration degree in Finance from Guru Nanak Institute of Management Studies, Mumbai.
He was an Equity Research Analyst at Shubhkam Ventures Pvt. Ltd. for over five years, where he focused on the pharmaceutical and information technology industries. He then joined LIC Mutual Fund as an Equity Research Analyst, focusing on pharmaceuticals, information technology, and specialty chemicals.
Mr. Doshi manages the LIC Mutual Fund Debt Hybrid Fund Direct with an AUM of 92 Cr as of 1 March 2021. The scheme appreciated by over 10% in 2020.
Why should you invest in LIC Mutual Fund?
When you are planning the education of your child, the importance of the investment instrument you use is increased manifold. Even one small mistake can cause years’ worth of returns to turn into an opportunity cost, and your eventual financial goals become even more difficult to meet.
The importance of saving for your child’s education from an early age cannot be understated. Starting early can save you the inconvenience and difficulty that comes with having to scramble for funds years down the line when your child eventually wants to depart for one of the best educational institutions in the world.
The decision to invest in a mutual fund isn’t merely governed by those at the top who manage the fund. The advisors that interact with the customer must also be competent and trustworthy.
When you make a decision to invest in a LIC Mutual Fund, you can communicate the reason for your investment to your mutual fund advisor and trust LIC advisors to recommend the right find for your requirement.
Once you have communicated the quantum of funds you require to send your child for studies abroad, LIC Mutual Fund advisors will provide you with detailed recommendations concerning the funds that LIC offers.
In conclusion, the LIC Mutual Fund has been a beacon of trust for all its subscribers. It is incredibly stable and employs fund managers who are extremely competent at ensuring the appreciation of your funds.
LIC has nationwide coverage, and LIC advisors are qualified to provide you with the right recommendations for you and your kids.
Being one of the oldest financial companies in India, and moreover being owned by the government, it is possible to rest assured that your come is in safe hands with LIC. These factors make LIC a great option to ensure that you have enough money to educate your child abroad.
Invest in LIC Mutual Fund using EduFund
You can never be too early in deciding to invest in your child’s education. With tuition fees for education abroad rising by the year and admissions becoming more and more competitive, you would not want to be in a situation where your child gains admission to a great school, but you simply can afford the fees.
EduFund provides you with access to experienced financial advisors who can guide you through the process of investing in the right mutual funds for your purposes.
Services provided by EduFund are completely customized as per your need and requirements. The process of investment is also extremely simple and takes no more than a few minutes.
FAQs
What are some best LIC Mutual Fund Schemes to invest in?
Some of the top LIC Mutual Fund Schemes are LIC Large & Mid Cap Fund Direct, LIC Index Sensex Fund Direct, LIC Index Nifty Fund Direct, etc.
What’s the minimum amount I can invest in some of the top LIC Mutual Funds?
The minimum investment amount varies from scheme to scheme. However, some MF schemes like LIC MF Tax Plan have set Rs 500 as the minimum investment amount.
Can I invest in LIC Mutual Funds online?
Yes, you can start investing in LIC Mutual Funds from the comfort of your home today. All you have to do is download the EduFund App, complete your registration and KYC verification, explore your investment options, and start investing in the scheme of your choice. No paperwork required!
