In today’s time, everyone wants to make their future safe and financially strong. But it is not possible for everyone to invest more. In such a situation, if you are told that you can make a fund of up to ₹ 86 lakh in future by depositing a small amount of ₹ 1000 month, then will you want to leave this opportunity?
A new Mutual Fund SIP scheme of LIC (Life Insurance Corporation of India) has opened the way for the common people to realize this dream. This scheme is special for those who want to create a big fund despite low income and provide financial security to their family.
In this article, we will know in detail how this scheme of LIC works, what are the benefits of investing in it, who can invest in it, is there any risk, and how you can also be a part of this scheme.
Also, we will tell you how true this plan is and what is important to take care of before investing in it. If you also want to make a strong financial plan for your future, then this article will prove to be very beneficial for you.
LIC ₹ 1000 Monthly Investment Scheme: Overview and highlights
This scheme of LIC has been introduced as Mutual Fund SIP (Systematic Investment Plan), in which you can make funds of ₹ 86 lakhs in a long time of 20 to 30 years by depositing just ₹ 1000 every month. This scheme is especially for those who want to make small savings big and also want to take advantage of life insurance.
| Parameter | Description |
| Name of the scheme | Lic Mutual Fund Sip Scheme |
| Monthly investment amount | ₹ 1000 |
| Investment period | 20-30 years |
| Estimated return | ₹ 86 lakh (25% annual return) |
| Way of investment | SIP (Systematic Investment Plan) |
| Type of investment | Mutual Fund + Life Insurance |
| Company | LIC (Life Insurance Corporation of India) |
| tax benefit | Tax exemption under Section 80C |
| Liquidity | Partial withdrawal possible if needed |
| Risk level | Market based, medium to high |
The main advantages of LIC Scheme
- Fund larger than small amount: Make a fund of millions with a savings of just ₹ 1000 months.
- Life Insurance Cover: Investment as well as life insurance protection.
- Tax exemption: Tax saving benefit under Section 80C.
- Better for long periods: tremendous impact of compounding in 20-30 years.
- Financial Security: Security for both family and future.
- Easy Investment Process: Start investing online or through agent.
What is LIC Mutual Fund SIP scheme?
LIC’s Mutual Fund SIP scheme is a scheme in which you invest a fixed amount (₹ 1000 or more) every month. This money is invested in mutual funds, which invests in stock market and other financial instruments. The biggest advantage of SIP is that you can make big funds than small amounts, because the effect of compounding is added to it.
Magic of compounding
Suppose you invest ₹ 1000 every month and get 25% annual return, then after 20 years you can get a fund of about ₹ 86 lakh on your total investment (₹ 2,40,000). This compounding is possible due to effect, in which the interest on your money also earns further interest.
How to invest in this scheme of LIC?
It is very easy to invest in this scheme of LIC. Follow the steps below:
- Register: First go to LIC’s website or contact the nearest LIC agent.
- Choose SIP option: Choose an amount of ₹ 1000 or more for Mutual Fund SIP.
- Complete the KYC process: Submit Aadhaar card, PAN card and bank details.
- Set auto debit: Every month the amount fixed from your account will be deducted automatically.
- Start investing: Now your investment will start and you will get a statement every month.
The main features of LIC Scheme
- Monthly investment facility: You can choose SIP of ₹ 1000 or more as per your convenience.
- Suitable for long periods: This scheme is the best for 20–30 years, which provides full benefit of compounding.
- Possibility of returns: If the market performs well then you can get an annual return of up to 20-25%.
- Insurance cover: In some schemes of LIC, insurance cover is also available, which provides protection to the family.
- Tax exemption: Tax exemption is given on choosing schemes like ELSS.
- Liquidity: Partial withdrawal facility is also available when needed.
Benefits of LIC Scheme
- Big advantage from small investment: People with low income can also easily invest.
- Helpful in financial planning: Children can prepare funds for big goals like education, marriage, retirement.
- Risk Diversification: Investing in mutual funds, the risk is divided into different sectors.
- Online tracking: You can track your investment online.
- Transparency: Transparency persists due to a government company like LIC.
Who can invest in LIC’s plan?
- All Indian citizens above 18 years old
- Student, employee, businessman, housewife
- People who want to invest for long periods
- People who want tax exemption
Documents required for investment in LIC Scheme
- Aadhar card
- PAN card
- Bank passbook/checkbook
- Passport Size Photo
- Mobile number and email id
How to get returns in LIC Scheme?
The return of LIC’s Mutual Fund SIP scheme depends on the performance of the market. If the market performs well then you can get an annual return of up to 20-25%. However, LIC’s traditional policies (such as endowment, money-back) usually get a return of 5-6%. Therefore, Mutual Fund SIP is the best option for more returns.
Calculation for example
If you invest ₹ 1000 every month for 20 years and get 25% annual return, then:
- Total investment: ₹ 2,40,000 (in 20 years)
- Estimated maturity amount: ₹ 86,00,000+
Tax benefits in LIC Scheme
If you choose a mutual fund scheme like ELSS (Equity Linked Savings Scheme), then you can get a tax exemption of up to ₹ 1.5 lakh under Section 80C of the Income Tax Act. Also, there is a tax exemption on the maturity amount (according to the conditions).
Precautions and Risk related to LIC Scheme
- Market Risk: Mutual Fund SIP is based on market, so it may fluctuate.
- Regular investment is necessary: If you stop investing in the middle, you will not get the expected returns.
- Long-term patience: It is necessary to continue investing for 20-30 years for more returns.
- Selection of funds: It is necessary to choose the right Mutual Fund, seek expert advice for this.
Frequently asked questions related to LIC Scheme (FAQs)
Question 1: Can ₹ 1000 monthly investment really get ₹ 86 lakh?
If you invest in SIP regularly for 20-30 years and get 20-25% annual return, it is possible.
Question 2: Is this plan completely safe?
It is a Mutual Fund based scheme, so it includes market risk. However, the risk decreases in the long term.
Question 3: Can I stop investing in the middle?
Yes, but this will affect your final returns. It is better to continue investing.
Question 4: Does it get tax exemption?
There is a tax exemption on choosing an ELSS scheme.
Question 5: Does life insurance also get it?
Some schemes also provide insurance cover, but SIP mainly has a focus on investment.
Step-by-step investment guide for LIC Scheme
- Contact LIC’s website or agent.
- Choose Mutual Fund SIP option.
- Submit KYC documents.
- Set auto debit.
- Continue investment every month.
- Review your investment from time to time.
Which Mutual Fund SIPs are the best for LIC Scheme?
- Large cap funds
- Mid Cap Funds
- Small Cap Funds
- ELSS Funds (Tax Saving)
- Hybrid funds
Necessary tips for LIC Scheme
- The sooner you start investing, the more benefit you will get.
- Long -term targets when investing in SIP.
- Do not panic with market fluctuations.
- Check your fund performance from time to time.
LIC Scheme options (alternatives)
If you want to see LIC’s Mutual Fund SIP other options, then you can also see the options given below:
- PPF (Public Provident Fund)
- Sukanya samriddhi yojana
- Post Office RD/FD
- NPS (National Pension Scheme)
- Bank FD/RD
Advantages and disadvantages of LIC Scheme (Pros and Cons)
| Advantage | Loss |
| Large funds than small amount | Market risk |
| Tax exemption | Return not guaranteed |
| Life Insurance Cover | Long -term patience is necessary |
| Liquidity | Return low on closing in between |
| Transparency and security | The correct fund selection is required |
conclusion
This Mutual Fund SIP scheme of LIC is a great opportunity for those who want to make big funds than small savings. Saving just ₹ 1000 months can make you and your family’s future safe. However, before investing, understand your financial goals, risk profiles and investment periods. If you continue investing for a long time and choose the right fund, it is absolutely possible to make a fund of ₹ 86 lakh.
Disclaimer:
This article is written only for information. This scheme of LIC is based on Mutual Fund SIP, which includes market risk. The return in it is not guaranteed, but depends on the performance of the market. LIC’s traditional policies usually do not get so much return, but Mutual Fund SIP can get good returns in a long period. Be sure to consult your financial advisor before investment and read all the conditions of the plan carefully. It is necessary to do complete information and research before making any investment.
