LIC Debt Mutual Fund

LIC Debt Mutual Funds are investment options that allow investors to invest in fixed-income securities like bonds, government securities, and money market instruments. These funds aim to generate regular income for investors while minimising risk. They are managed by LIC Mutual Fund and offer various schemes with different investment objectives, duration, and risk profiles. Investors can choose a scheme that aligns with their investment goals and risk appetite. Overall, LIC Debt Mutual Funds are a popular investment option for those seeking stable returns with moderate risk.

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Best Mutual Funds 2024

Result Showing 1-25 of 69 Mutual Funds

    Mutual Fund Schemes
    Category
    Nav
    5Y Returns
    AUM
    (in Cr.)
    Compare
    debt
    59.10Feb 16, 2024
    7%
    ₹45

    Add to Compare

    debt
    17.03Feb 16, 2024
    7%
    ₹45

    Add to Compare

    debt
    24.82Feb 16, 2024
    7%
    ₹1,147

    Add to Compare

    debt
    68.68Feb 16, 2024
    7%
    ₹182

    Add to Compare

    debt
    16.59Feb 16, 2024
    7%
    ₹182

    Add to Compare

    debt
    33.41Feb 16, 2024
    7%
    ₹1,326

    Add to Compare

    debt
    20.25Feb 16, 2024
    7%
    ₹45

    Add to Compare

    debt
    54.18Feb 16, 2024
    7%
    ₹45

    Add to Compare

    debt
    31.29Feb 16, 2024
    7%
    ₹45

    Add to Compare

    debt
    15.62Feb 16, 2024
    7%
    ₹45

    Add to Compare

    debt
    13.84Feb 16, 2024
    7%
    ₹131

    Add to Compare

    debt
    13.84Feb 16, 2024
    7%
    ₹131

    Add to Compare

    debt
    13.52Feb 16, 2024
    6%
    ₹1,326

    Add to Compare

    debt
    12.58Feb 16, 2024
    6%
    ₹1,326

    Add to Compare

    debt
    31.19Feb 16, 2024
    6%
    ₹1,326

    Add to Compare

    debt
    14.16Feb 16, 2024
    6%
    ₹182

    Add to Compare

    debt
    64.62Feb 16, 2024
    6%
    ₹182

    Add to Compare

    debt
    10.06Feb 16, 2024
    6%
    ₹1,326

    Add to Compare

    debt
    11.67Feb 16, 2024
    6%
    ₹1,326

    Add to Compare

    debt
    10.89Feb 16, 2024
    6%
    ₹1,326

    Add to Compare

    debt
    13.13Feb 16, 2024
    6%
    ₹131

    Add to Compare

    debt
    10.06Feb 16, 2024
    6%
    ₹1,326

    Add to Compare

    debt
    13.13Feb 16, 2024
    6%
    ₹131

    Add to Compare

    debt
    20.12Feb 16, 2024
    5%
    ₹1,125

    Add to Compare

    debt
    13.42Feb 16, 2024
    5%
    ₹1,125

    Add to Compare

    Result Showing 1-25 of 69 Mutual Funds

    Investment Objectives - LIC Debt Mutual Fund

    LIC Debt Mutual Funds aim to provide investors with a stable and regular income by investing in debt instruments such as corporate bonds, government securities, and money market instruments. These funds have a low- to medium-risk profile and are suitable for regular income and capital preservation investors.

    The investment objectives of LIC Debt Mutual Funds are:

    • To generate regular income for investors by investing in a diversified debt and money market instruments portfolio.
    • To maintain liquidity and safety of the invested capital by investing in high-quality debt instruments.
    • To provide a higher rate of return than traditional fixed-income investments like bank deposits, with relatively low risk.

    Risks Involved in LIC Debt Mutual Funds

    Below are the potential risks involved in LIC Debt Mutual Funds:

    • Interest Rate Risk: Debt mutual funds are subject to interest rate risk, which means that any changes in interest rates can impact the returns generated by the fund. If interest rates rise, the bond prices fall, leading to a decrease in the NAV of the fund.
    • Credit Risk: Credit risk refers to the possibility that the issuer of the bond may default on interest or principal payments. This risk is more significant in debt mutual funds that invest in lower-rated instruments or debt securities issued by companies with weak credit ratings.
    • Liquidity Risk: Liquidity risk is the risk that the fund may not be able to sell its holdings quickly or at a fair price. This risk is higher in the case of illiquid securities, which can negatively affect the fund's returns and NAV.
    • Market Risk: Debt mutual funds are subject to market risk, which means that the fund's NAV may fluctuate due to changes in the market conditions, such as a recession or a financial crisis.
    • Reinvestment Risk: Reinvestment risk refers to the possibility that the proceeds from the fund's maturity or coupon payments may not be reinvested at the same interest rates. This can impact the returns generated by the fund.
    • Inflation Risk: Inflation risk is the risk that the purchasing power of the fund's returns may be eroded due to inflation. Debt mutual funds may not be able to generate inflation-beating returns, which can impact the investor's wealth.

    Return Potential of LIC Debt Mutual Funds

    The return potential of LIC Debt Mutual Funds depends on several factors, including the fund's investment objective, the credit quality of the underlying securities, and the prevailing interest rates in the market. In general, the return potential of LIC Debt Mutual Funds is moderate, ranging from 6% to 8% per annum. However, this return potential can vary significantly depending on market conditions and the fund's investment strategy.

    Who Should Invest in LIC Debt Mutual Funds?

    LIC debt mutual funds suit investors looking for a stable and predictable income stream. These funds invest in debt securities such as bonds, debentures, and government securities, providing investors with a relatively lower risk of loss than equity mutual funds. They are ideal for investors with a low to medium risk appetite, wanting to diversify their portfolio, and looking for long-term capital appreciation. LIC debt mutual funds are also suitable for investors looking for regular income through systematic withdrawal plans or dividend options. Overall, investors looking for a steady income stream and wanting to preserve their capital may consider investing in LIC debt mutual funds.

    Things To Consider Before Investing in LIC Debt Mutual Funds

    Investing in LIC debt mutual funds is a popular choice for those seeking stable returns on their investment. Before investing, it is important to consider the fund's track record, the credit rating of the companies it invests in, and the fund manager's experience and expertise. Additionally, it is important to analyse the fund's expense ratio and the investor's investment horizon and risk tolerance. It is recommended to conduct thorough research and seek advice from a financial expert before making any investment decision.

    Tax on LIC Debt Mutual Funds

    The long-term capital gains on debt mutual funds, including LIC debt mutual funds, will be taxed at a flat rate of 20%. Previously, these gains were taxed at a lower rate of 10% without indexation and 20% with indexation. However, the holding period for long-term capital gains tax on debt mutual funds remains the same, which is 36 months. This change in tax rates may affect the overall returns from debt mutual funds and investors' investment decisions.

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    Frequently Asked Questions

    How are LIC Debt Mutual Funds doing?

    LIC Debt Mutual Funds have given a 4% to 5% return in the past three years. Moreover, the returns in the future are not guaranteed but can still be considered a safer bet in relation to other more volatile funds.

    Is LIC Debt Mutual Funds Safe?

    LIC Debt Mutual Funds can be considered a safer investment option than their equity, hybrid, or commodity funds. Moreover, owing to investors’ appetite, LIC Debt Mutual Funds can also be a lucrative investment option.

    Is it good to invest in debt funds?

    Debt funds are a low-risk, low-return investment option and can be good for investors not looking for major risk capitalisation.
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