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Best LIC Equity Mutual Funds

Established in 1989, LIC Mutual Fund is an associate company of LIC of India. While LIC has a 45% stake in the asset management company (AMC), 39.3% of the shares are held by LIC Housing Finance Limited. The remaining shares are owned by GIC Housing Finance Limited (11.7%) and Union Bank (4%). 

For the quarter ending March 2021, the fund house has a QAAUM of approximately Rs.16,594 crore. This AMC offers over 20 schemes, which include the best LIC equity mutual funds

Equity funds are MF schemes that primarily invest their fund corpus in equity shares of companies across different market capitalisations and sectors. These schemes are further categorised into sub-categories based on market capitalisation and investment strategy or objective. The different types of equity funds include large-cap, mid-cap, thematic, ELSS, value, etc. While a portfolio of an equity fund primarily comprises stocks, the remaining portion consists of debt and money market instruments or even cash. 

The performance of these funds is impacted significantly owing to market fluctuations. Hence, the risk level associated with the top LIC equity mutual funds is extremely high. However, they also hold the potential to deliver sizeable returns.

Taxability

The returns earned on these schemes are taxable based on how long an investor holds his/her units. Here’s how the gains are taxed. 

Short-term Capital Gains Tax: If investors redeem their units within one year from the date of purchase, the returns earned are known as short-term capital gains (STCG). A flat tax rate of 15% is applicable on such gains. 

Long-term Capital Gains Tax: In case an investor redeems the units after one of investment, the returns he/she earns from the sale are termed long-term capital gains (LTCG). Such gains of up to Rs.1 lakh are not taxed. However, the amount exceeding Rs.1 lakh is taxable at 10%. Note that investors are not eligible for indexation benefits in this case.  

Factors to Consider Before Investing

The best LIC equity mutual funds are of various types and not suitable for every investor. Hence, one must consider certain things before they allocate their funds to a scheme. Let’s delve into these aspects. 

Investment goal: Investing, in general, is complicated as there is no readymade solution. If one type of equity scheme is suitable for an individual, the same might not be appropriate for another. Hence, it’s always vital for investors to identify their financial goals before deciding which is the best LIC equity mutual fund for them. 

Risk appetite: As noted above, equity funds are associated with high risk as the underlying securities are subject to market volatility. Hence, investors must assess their risk profile before they park their funds in an equity scheme. 

Exit load: This is a charge a fund house levies on investors if they sell their units before a pre-specified period. The main purpose of exit load is to stop investors from withdrawing their units from a fund prematurely. The exit loads of the best LIC equity mutual funds are not the same. Hence, one must know it beforehand before parking their savings in a fund. 

Expense ratio: Expense ratio refers to the charge AMC levies on investors to finance the operating and administrative expenses of a scheme. It is a small % of a fund’s total assets and includes the fund manager’s salary, advertising costs, and more. This fee has a direct impact on the returns earned by an investor. One must consider this aspect when investing in the best LIC equity mutual funds 2021

Past performance of a fund: The historical returns of a fund does not determine how it’ll perform in the future. However, it offers insights into whether a scheme has been able to achieve the objective it was set up to fulfil. A fund with a proven track record of delivering consistently represents vital things, such as the fund manager’s efficiency. 

Experience of the fund manager: The underlying stocks of the best LIC equity mutual funds are impacted by volatile market conditions. Thus, fund managers have to rely on their risk management techniques, thorough research and analysis to overcome the various challenges of a dynamic economic environment. This is where experience comes in handy. A portfolio manager with vast experience in this field is likely to overcome difficult challenges that may come his/her way. 

Direct/regular plan: Direct plans are mutual fund schemes that one can directly invest in. It does not involve third parties, for example, brokers or distributors. These equity mutual funds are prefixed with the word “direct”. On the contrary, regular plans involve third parties, for which asset management companies have to pay commission. Hence, regular plans report lower NAVs and also have a higher expense ratio in comparison to direct plans. 

Investment route: When investing in the best LIC equity mutual funds, investors have to opt for an investment mode. They can either choose a systematic investment plan (SIP) or the lump sum route. The former enables individuals to invest their savings via fixed monthly instalments at regular intervals, like monthly, quarterly, annually, etc. However, by opting for the lump sum mode, an individual can invest his/her entire amount in one go. 

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Top 10 Lic Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
LIC MF Large & Mid Cap FundEquityVery High39.2%4₹1,500
LIC MF Index Sensex FundOtherVery High30.0%3₹44
LIC MF Banking & PSU Debt FundDebtLow to Moderate3.1%2₹1,909
LIC MF Liquid FundDebtLow to Moderate3.4%5₹6,602
LIC MF Tax FundEquityVery High33.9%3₹410
LIC MF Govt. Securities FundDebtLow to Moderate3.0%4₹72
LIC MF Banking & Financial Services FundEquityVery High18.5%1₹63
LIC MF Index Nifty FundOtherVery High31.1%2₹53
LIC MF Savings FundDebtLow to Moderate4.3%3₹1,757
LIC MF Large Cap FundEquityVery High33.0%3₹648
LIC MF Flexi Cap FundEquityVery High25.9%2₹428
LIC MF Equity Hybrid FundHybridVery High20.1%2₹471
LIC MF Bond FundDebtLow to Moderate2.0%2₹131
LIC MF Infrastructure FundEquityVery High53.7%3₹80
LIC MF Debt Hybrid FundHybridModerate9.5%3₹68
View All Top 10 Lic Mutual Funds

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

LIC MF Large & Mid Cap Fund Direct Growth

Fund Performance: The LIC MF Large & Mid Cap Fund has given 20.58% annualized returns in the past three years and 18.21% in the last 5 years. The LIC MF Large & Mid Cap Fund belongs to the Equity category of LIC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in LIC MF Large & Mid Cap Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹1,500Cr
1Y Returns39.2%

LIC MF Index Sensex Fund Direct Growth

Fund Performance: The LIC MF Index Sensex Fund has given 17.19% annualized returns in the past three years and 17.19% in the last 5 years. The LIC MF Index Sensex Fund belongs to the Other category of LIC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in LIC MF Index Sensex Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹44Cr
1Y Returns30.0%

LIC MF Banking & PSU Debt Fund Direct Growth

Fund Performance: The LIC MF Banking & PSU Debt Fund has given 7.89% annualized returns in the past three years and 7.47% in the last 5 years. The LIC MF Banking & PSU Debt Fund belongs to the Debt category of LIC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in LIC MF Banking & PSU Debt Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹1,909Cr
1Y Returns3.1%

LIC MF Liquid Fund Direct Growth

Fund Performance: The LIC MF Liquid Fund has given 4.93% annualized returns in the past three years and 5.78% in the last 5 years. The LIC MF Liquid Fund belongs to the Debt category of LIC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in LIC MF Liquid Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹6,602Cr
1Y Returns3.4%

LIC MF Tax Direct Plan Growth

Fund Performance: The LIC MF Tax Fund has given 16.81% annualized returns in the past three years and 16.5% in the last 5 years. The LIC MF Tax Fund belongs to the Equity category of LIC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in LIC MF Tax Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt₹500
AUM₹410Cr
1Y Returns33.9%

LIC MF Govt. Securities Fund Direct Growth

Fund Performance: The LIC MF Govt. Securities Fund has given 9.34% annualized returns in the past three years and 7.07% in the last 5 years. The LIC MF Govt. Securities Fund belongs to the Debt category of LIC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in LIC MF Govt. Securities Fund via lump sum is ₹10,000 and via SIP is ₹1,000.

Min Investment Amt₹10,000
AUM₹72Cr
1Y Returns3.0%

LIC MF Banking & Financial Services Fund Direct Growth

Fund Performance: The LIC MF Banking & Financial Services Fund has given 11.39% annualized returns in the past three years and 7.8% in the last 5 years. The LIC MF Banking & Financial Services Fund belongs to the Equity category of LIC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in LIC MF Banking & Financial Services Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹63Cr
1Y Returns18.5%

LIC MF Index Nifty Fund Direct Growth

Fund Performance: The LIC MF Index Nifty Fund has given 16.62% annualized returns in the past three years and 16.06% in the last 5 years. The LIC MF Index Nifty Fund belongs to the Other category of LIC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in LIC MF Index Nifty Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹53Cr
1Y Returns31.1%

LIC MF Savings Fund Direct Growth

Fund Performance: The LIC MF Savings Fund has given 5.49% annualized returns in the past three years and 6.19% in the last 5 years. The LIC MF Savings Fund belongs to the Debt category of LIC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in LIC MF Savings Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹1,757Cr
1Y Returns4.3%

LIC MF Large Cap Fund Direct Growth

Fund Performance: The LIC MF Large Cap Fund has given 18.73% annualized returns in the past three years and 16.58% in the last 5 years. The LIC MF Large Cap Fund belongs to the Equity category of LIC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in LIC MF Large Cap Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹648Cr
1Y Returns33.0%

LIC MF Flexi Cap Fund Direct Growth

Fund Performance: The LIC MF Flexi Cap Fund has given 14.85% annualized returns in the past three years and 11.68% in the last 5 years. The LIC MF Flexi Cap Fund belongs to the Equity category of LIC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in LIC MF Flexi Cap Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹428Cr
1Y Returns25.9%

LIC MF Equity Hybrid Fund Direct Growth

Fund Performance: The LIC MF Equity Hybrid Fund has given 13.56% annualized returns in the past three years and 11.12% in the last 5 years. The LIC MF Equity Hybrid Fund belongs to the Hybrid category of LIC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in LIC MF Equity Hybrid Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹471Cr
1Y Returns20.1%

LIC MF Bond Fund Direct Growth

Fund Performance: The LIC MF Bond Fund has given 7.64% annualized returns in the past three years and 5.68% in the last 5 years. The LIC MF Bond Fund belongs to the Debt category of LIC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in LIC MF Bond Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹131Cr
1Y Returns2.0%

LIC MF Infrastructure Fund Direct Growth

Fund Performance: The LIC MF Infrastructure Fund has given 19.81% annualized returns in the past three years and 15.34% in the last 5 years. The LIC MF Infrastructure Fund belongs to the Equity category of LIC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in LIC MF Infrastructure Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹80Cr
1Y Returns53.7%

LIC MF Debt Hybrid Fund Direct Growth

Fund Performance: The LIC MF Debt Hybrid Fund has given 9.67% annualized returns in the past three years and 7.4% in the last 5 years. The LIC MF Debt Hybrid Fund belongs to the Hybrid category of LIC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in LIC MF Debt Hybrid Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹68Cr
1Y Returns9.5%

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