By the end of January 2018, LIC Mutual Fund introduced a daily SIP scheme that offers the investors the choice to invest an amount as small as Rs.300 per day which would be accessible in 5schemesof equity.

Read to know more in detail about the scheme, what it offers and its benefits.

LIC Mutual Fund

The Life Insurance Corporation of India (LIC) is the largest life insurance provider in India.LIC also provides mutual funds under 7 funds categories. Its simplified investment procedure, a high standard corporate governance and financial ethics, has made LIC Mutual Fund the most preferred investment manager.

What is SIP?

A Systematic Investment Plan (SIP) is a smart way to invest in mutual funds where the investor has to invest a fixed small amount regularly on a weekly/monthly/quarterly basis.

If you’re a new investor, it is best for you to start with a SIP as it includes the habit of saving and has the following benefits:

  • Power of Compounding
  • Rupee Cost Averaging
  • Disciplined Saving
  • Flexible and Affordable
  • Acts as an Emergency Fund
  • Convenience

What Does LIC Mutual Fund’s SIP Scheme Offer?

Under this plan, LIC Mutual Fund offers investors the option to invest as low as Rs300 per day across 22 working days.

The fund house currently records an inflow of SIP of around Rs23 crore each month. This number is expected to go up to Rs30 crore every month (which is a 30% growth), succeeding the daily SIP inflow.

In an official statement by LIC Mutual Fund, they mentioned that through this daily SIP, the fund house is hoping to endorse the habit of daily investing and the purpose is to generate wealth through daily investing with a lowest sum of Rs 300 across twenty two working days that will lead to an investment of Rs 6,600 monthly.

Adding to it, Rajesh Patwardhan, chief marketing officer of LIC Mutual Fund informed that the present financial year has witnessed a rush of fifty six percent in mutual funds with the investments in SIP.

Mutual Fund SIP is becoming recognised amid the investors as it inspires disciplined investing with no worry about the volatile market and timing either,” Patwardhan said that he believed that while SIP is a healthier route to investing in equity, daily SIP will help further in breaking the volatile market and benefit our investors from rupee averaging cost.

Equity Schemes Available Under LIC SIP Mutual Fund

In this plan, investors can invest in SIPs which would be available in 5 equity schemes. They are:

  1. LIC MF Equity Fund: Provide capital growth by investing mainly in equities. Dedicated to engineering investments in the stock market
  2. LIC MF Growth Fund: An open ended pure scheme of growth which seeks to deliver capital growth by investing mainly in debt and instruments of equity and also in and other instruments permitted of money and capital markets
  3. LIC MF Midcap Fund: Generate long term appreciation of capital by substantially investing in a portfolio of equity-linked and equity instruments of midcap companies.
  4. LIC MF Infrastructure Fund: Objective of the scheme is to generate long-term growth from a portfolio of equity/equity related instruments of companies involved either indirectly or directly in the infrastructure sector.
  5. LIC MF Index Fund: Generate returns corresponding with the performance of the index either Sensex or Nifty based on the plans by investing in the respective stocks index subject to errors that can be tracked.

LIC Mutual Fund also provides the users the option to put in daily SIP’s in 2 hybrid schemes:

  1. LIC MF Balanced Fund: An open ended scheme which is balanced and seeks to provide regular capital and returns appreciation as per the selection of plan by investing in debt and equities.
  2. LIC MF Monthly Income Plan: Generate steady income by mainly investing in a portfolio of money market instruments and quality debt securities. It also pursues to create the appreciation of capital by investing some fraction in a blend of equity instruments.

How the LIC SIP Scheme Benefits You?

While most of you would already be having other investment options, LIC Mutual Funds daily SIP scheme has the following benefits:

  • Inculcates the practice of saving by setting aside an amount each day for investment.
  • Convenience, as you can decide how much you want to save each day, with the minimum amount being as low as Rs300 per day. Also, you can opt for the amount to be auto debited
  • Small savings each day builds up to a large corpus in the long run due to the power of compounding
  • The investment average cost comes down as investor passes through all stages of the market
  • No tenure period, meaning you can withdraw the amount anytime you want.
  • The trusted service of LIC Mutual Fund assures you peace of mind.
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