Top 10 Lic Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
LIC MF Bond FundDebtModerate4.3%3star283
LIC MF Savings FundDebtModerately Low7.5%2star1,613
LIC MF G Sec FundDebtModerate7.0%2star48
LIC MF Liquid FundDebtLow7.4%2star10,668
LIC MF Banking & PSU Debt FundDebtModerate7.2%1star165
View All Top 10 Lic Mutual Funds

Best LIC Debt Mutual Funds

Established in 20th April 1989, it is an associate company of one of India's most reputed brands LIC. LIC Mutual funds aim to create financial discipline and corporate governance and is chosen by many investors, due to it being a pioneering brand.

The motto of LIC is to create value for its investors by adopting an investing strategy that is innovative, yet stable for a dynamic environment, such as ours. It targets to cater to all segments of the society and creating an investment experience which is unparalleled.

It offers a large variety of funds, starting from equity, debt, hybrid, solution oriented and index funds. Investors of different risk appetites and investment duration can build a strong portfolio through LIC mutual funds.

If you are saving for very short-term goals like a vacation or buying an automobile, then this category is ideal for gains within one year. It is also an excellent resort to park your money until you decide where to invest or spend next. Returns are taxed as per your income tax slab if sold before three years and have negligible tax post that period.

Purpose: Invest here for your short term goals like a vacation, buying a bike, jewelry or expensive gadget.

Let's have a closer look

Now let us jump and check about these top 10 mutual fund schemes.

LIC MF Bond Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Medium to Long Duration segment and provided 6.75% annualized returns in the last 3 years. In the last 1 year, it gave 4.3% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 4.3% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Marzban Irani

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating3star
AUM283Cr
1Y Returns4.3%

LIC MF Savings Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 8.07% annualized returns in the last 3 years. In the last 1 year, it gave 7.45% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.45% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Rahul Singh

Launch Date1 Jan 2013
Min Investment Amt5,000
Groww Rating2star
AUM1,613Cr
1Y Returns7.5%

LIC MF G Sec Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 8.24% annualized returns in the last 3 years. In the last 1 year, it gave 7.04% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.04% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Marzban Irani

Launch Date1 Jan 2013
Min Investment Amt10,000
Groww Rating2star
AUM48Cr
1Y Returns7.0%

LIC MF Liquid Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Liquid segment and provided 7.33% annualized returns in the last 3 years. In the last 1 year, it gave 7.43% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.43% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Rahul Singh

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating2star
AUM10,668Cr
1Y Returns7.4%

LIC MF Banking & PSU Debt Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Banking & PSU segment and provided 7.74% annualized returns in the last 3 years. In the last 1 year, it gave 7.21% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.21% returns in the last 1 year. Groww rated this fund as 1 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Marzban Irani

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating1star
AUM165Cr
1Y Returns7.2%

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What does investing in LIC Debt Mutual Funds actually mean?

Suppose a mutual fund invests in ten stocks and total current market value of these stocks is 1.1 Crore. Out of this, the AMC deducts say, 0.1 Crore for operating the fund (this is known as the expense ratio). So the net value is 1 crore. Now the AMC will divide this 1 Crore into say, 10,000 parts. These parts are known as units. The cost of one unit is 1Cr/10,000 = Rs. 1000. This is known as the Net Asset Value (NAV) of the mutual fund. Suppose the AMC has set a minimum investment requirement of Rs. 500. Then if you pay Rs. 500, you will get 0.5 units of the fund. Remember that the cost of one unit is the cost when you made the purchase. Suppose after one year, the NAV has fallen to Rs. 700 per unit and you wish to exit the fund (also known as redemption), then you sell your 0.5 units back to the AMC and get 0.5 x Rs. 700 = Rs. 350 back. Yes, you invested Rs. 500 and got back Rs. 350 – a loss of 150 over a year. The point is, that you buy units at current NAV and sell units (fully or partially) at current NAV. This is what investing in mutual fund actually means.

How to invest in LIC Mutual Funds on Groww?

One of the best ways to hedge against the small-cap volatility is to adopt a phased approach, also known as Systematic Investment Plan (SIP) approach. We are sure that you must be aware of SIP and its benefits. Buying in small quantity but buying regularly provides you with faster growth. On Groww.in, all transactions to and from AMC is done via BSE. When you decide to invest in a large cap mutual fund of your choice, you choose that mutual fund on the website and click ‘invest’. Following that, you are redirected to the BSE page where you make the payment. BSE then directs your money to the AMC managing your mutual fund. To be assured at your end, you can visit the individual AMC website after the payment. You would be able to see all your purchased units against your folio number.

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Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.
Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, investment goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs.
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