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Rs.12 lakhs with savings of Rs.10 thousand.. Bumper returns with this LIC scheme!

Samayam | September 16, 2024 11:05 AM CST

LIC Scheme: The magic of compounding works in mutual funds. However, it depends on the scheme we choose. A scheme of Life Insurance Corporation of India Mutual Fund has given high returns in the last 5 years. It provided Rs.12 lakhs together with the SIP investment of Rs.10 thousand. This scheme includes stocks of famous companies like HDFC Bank and TCS. Let's find out the details.

Highlights:

LIC scheme made magic
12 lakhs with a SIP of Rs.10 thousand
A scheme that provides high returns within 5 years

LIC Scheme: A mutual funds scheme of Indian life insurance company LIC, which is the largest insurance company in the country, is popular. It has given bumper returns to its investors in a short span of time. An investment of Rs.10 thousand through Systematic Investment Plan (SIP) has made a lump sum of Rs.12 lakhs. That too within five years. The benchmark index of this scheme is Nifty 500 TRI. It is noteworthy that the minimum SIP investment in this scheme is only Rs.1000. That means there is an opportunity to invest even from Rs.1000 per month.

Investing in mutual funds is not only about getting good returns but here compounding power does the magic. Generates interest on your interest. This will enable the formation of a large corpus in the long run. These mutual funds are the right choice for those who want to invest in stock markets but do not have proper knowledge. Mutual fund schemes are managed by professionals. This means that the risk is less compared to the stock markets. Now let us know about LIC mutual fund scheme which has given good returns in last 3 to 5 years.

LIC Mutual Fund Dividend Yield Fund has given bumper returns in the last year. The scheme has a compound annual growth rate (CAGR) of 60.25 percent. It outperformed the benchmark returns by 37.13 percent. 5 years ago it was Rs. 10,000 per SIP investment, if you start and continue, now the investment will be Rs. 12,89,992 will come up. The average annual returns on SIP investment of this scheme is 31.19 percent. Compared to other schemes it can be said to provide higher returns.

LIC Mutual Fund Dividend Yield Fund's equity investments include stocks of iconic companies like HDFC Bank, TCS, Reliance Industries, ICICI Bank and Power Finance Corporation. It invested more than 2 percent in those stocks. The LIC scheme was launched on December 21, 2018. Since then, the average annual returns of this scheme have been 24.85 percent.