LIC Equity Mutual Fund

LIC Equity Mutual Fund is a type of mutual fund managed by LIC Mutual Fund in India. It is a type of equity fund that invests in stocks of companies listed on the National Stock Exchange (NSE). The fund is designed to provide investors with exposure to the Indian equity markets. The fund house will invest in stocks of companies of all sizes, from large to mid and small-cap companies. The fund investments are managed by experienced fund managers with a long track record of successfully managing funds.

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Mutual Fund Schemes
NAV
5Y Returns
AUM(in Cr.)
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28.40Mar 1, 2024
24%
₹193
28.40Mar 1, 2024
24%
₹193
25.80Mar 1, 2024
23%
₹193
25.80Mar 1, 2024
23%
₹193
24.50Mar 1, 2024
21%
₹236
22.19Mar 1, 2024
20%
₹236
28.45Mar 1, 2024
19%
₹2,471
26.06Mar 1, 2024
19%
₹236
23.64Mar 1, 2024
18%
₹236
25.70Mar 1, 2024
18%
₹2,471

Investment Objective of LIC Equity Mutual Fund

The primary objective of LIC Equity Mutual Fund is to provide long-term capital appreciation by investing in a diversified portfolio of equity and equity-related instruments. The fund also seeks to generate a regular stream of income by investing in fixed-income securities. The fund aims to achieve its objectives through active management of its portfolio in accordance with the stated investment objective.

Risks Involved in LIC Equity Mutual Fund Schemes

While investing money in mutual funds to gain significant returns, an investor must get familiar with the LIC Equity Mutual Fund risks. Being familiar with the associated risks helps in making more informed investment decisions.

  1. Market Risk: The most common risk associated with investing in LIC Equity Mutual Fund is the risk of market price fluctuations. Equity investments are subject to market risk, which means that the value of the investment can go up or down depending on the performance of the stock market.
  1. Management Risk: Another risk associated with investing in LIC Equity Mutual Fund is the risk of poor management. As with any other fund, the performance of the fund depends on the skill and experience of the fund manager. If the fund manager is inexperienced or not competent enough to make sound investment decisions, the fund may not perform as well as expected.
  1. Interest Rate Risk: Interest rate risk is another risk associated with investing in LIC Equity Mutual Fund. This risk is related to the fact that the fund may be exposed to changes in the interest rates in the market. If interest rates increase, the fund may suffer losses due to the decreased demand for the stocks held by the fund.
  1. Liquidity Risk: Liquidity risk is another risk associated with investing in LIC Equity Mutual Fund. This risk is related to the fact that the fund may not be able to sell its holdings in a timely manner in order to meet redemption requests.

Return Potential of LIC Equity Mutual Fund

The potential return of a LIC Equity Mutual Fund depends on a variety of factors, including the performance of the underlying investments, market conditions, and the fund's management. Generally speaking, equity mutual funds can offer higher returns than other types of investments but also come with higher risks. Past performance is not a guarantee of future results. LIC Equity Mutual Fund returns help to determine how fruitful the investment can be.

Who Should Invest in LIC Equity Mutual Funds?

LIC Equity Mutual Funds are suitable for a variety of investors, depending on their risk profiles and financial goals. Investors looking to grow their wealth over the long term should consider investing in LIC Equity Mutual Funds, as they offer the potential for higher returns than other types of investments. Investors comfortable with taking on a greater amount of risk should consider investing in LIC Equity Mutual Funds, as they can generate greater returns than other types of investments. Additionally, investors who want to diversify their portfolio and gain exposure to the stock market should consider investing in LIC Equity Mutual Funds.

Key Considerations to Invest in LIC Equity Mutual Fund

When investing in mutual funds, an investor must consider several things, including LIC Equity Mutual Fund, NAV returns, associated risks and much more. Here is the brief on these considerations:

Past Performance: Before investing in any LIC Equity Mutual Fund, it is crucial to check the past performance of the fund. It helps investors understand the fund's track record and its associated risk.

Investment Goals: Before investing in LIC Equity Mutual Fund, it is essential to have a clear idea about your investment goals. Having clarity on the investment goals helps investors in deciding whether the fund is suitable for their financial needs and goals.

Risk Appetite: Whether you are a newbie or an experienced investor, it is vital to understand your risk appetite before investing in LIC Equity Mutual Fund. It helps determine the suitability of the fund based on your risk profile.

Expense Ratio: Similar to other factors, checking the expense ratio is equally important as it helps understand the fees associated with the fund. Additionally, it gives an idea of  how much returns to expect from the fund house.

Fund Manager: Fund managers are the key decision-makers of the investment. Thus, knowing who will be managing the fund investment is essential. Fund managers with years of experience and abundant market knowledge will bring significant returns to the fund house.

Tax on LIC Equity Mutual Fund

The tax on LIC Equity Mutual Fund will depend on the type of fund and the tax bracket of the investor. Equity mutual funds are generally taxed at 15% for short-term capital gains and 10% for long-term capital gains.

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FAQs

How is LIC Equity Mutual Fund doing?

LIC Equity Mutual Fund is doing well. It has delivered an average return of 8.5% in the last five years, outperforming the Nifty 50 and Sensex. The fund has a portfolio of large, mid and small-cap stocks, which have done well over the past few years. It also has a good track record of managing risk and providing steady returns.

Is LIC Equity Mutual Fund safe?

Yes, LIC Equity Mutual Fund is generally considered safe. As a reputed fund house manages the fund, it is perceived as a safe investment. The fund experiences moderate risk due to its exposure to equity markets, but its long-term returns have been good and have outperformed its benchmarks.

Is it good to invest in equity funds?

Yes, investing in equity funds can be a good option for long-term investors. Equity funds are a type of mutual fund that is invested in stocks rather than bonds and tend to offer higher returns than other conservative investments.

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