LIC fixed deposit scheme for senior citizens is a unique term deposit policy tailored to provide individuals aged 60 and above with a financial safety net.
Are you looking for a secure investment option with good returns? You may have heard about the two popular options - Life Insurance Corporation (LIC) and Mutual Funds. But which one is the better choice? This blog post will compare LIC and Mutual Funds to help you decide where to invest your hard-earned money. Read on to learn more about these investment options and determine the better choice. We have tabulated the information to make it easy for you to understand and compare the two.
|Features||life insurance||Mutual Funds|
|Definition||Life insurance policies are designed to provide financial protection for a policyholder’s family in the event of the policyholder’s death.||Mutual funds are designed to provide investors with a way to diversify their portfolios and make money over the long term.|
|Investment Objective||Life insurance secures the family's future in case of the policyholder’s demise.||Mutual funds help you meet long-term financial goals by giving returns on the investment made.|
|Risk Level||Life insurance policies offer a guaranteed return for the policyholder.||Mutual funds offer varying levels of risk depending on the types of investments held in the fund.|
|Liquidity||Life insurance policies are not liquid assets, as the policyholder cannot access the death benefit until after the policyholder dies.||Mutual funds are liquid assets, and investors can access their funds anytime.|
|Tenure||Life insurance policies typically have a set tenure.||Mutual funds are typically open-ended investments; investors can enter or exit the fund anytime.|
|Returns||Life insurance policies typically provide a fixed return.||Mutual funds typically provide variable returns based on the performance of the underlying investments.|
|Tax Benefit||Tax exemptions are up to a maximum premium of INR 1,50,000 under Section 80C of the Income Tax Act, 1961.||ELSS mutual funds are eligible for tax exemptions under Section 80C of the Income Tax Act, 1961, up to INR 1.5 lakh.|
|Diversification||Life insurance policies are limited to a single type of investment.||Mutual funds offer a wide range of investment options, allowing investors to spread their money across various asset classes.|
Life Insurance Corporation of India (LIC) is India's leading life insurance provider. It is the largest insurer in India and has one of the country's most diversified insurance products. LIC was established in 1956 by an Act of Parliament and is wholly owned by the Government of India. It provides a wide range of insurance plans to cater to different needs, from life insurance plans, endowment plans, health plans, pension plans, and child education plans to Unit-Linked Insurance Plans (ULIPs).
LIC is a popular investment choice for many due to its multiple advantages.
Here are some key benefits of investing in LIC:
Mutual funds are an investment vehicle that pools the money of multiple investors into one large portfolio. Mutual funds are professionally managed and diversified, meaning they are invested in various assets to help reduce risk and provide the potential for greater returns. Mutual funds are generally considered a low-cost way for investors to gain exposure to various securities, such as stocks, bonds and commodities. Investors in mutual funds can buy into a fund based on its objective (such as growth, income or global diversification).
Mutual funds have several advantages, making them an attractive option for many investors.
Here are some of the main advantages of mutual funds:
In a nutshell, both LIC and Mutual Funds have advantages and disadvantages. Ultimately, deciding where to invest should be based on your individual needs and preferences. LIC provides guaranteed returns and stability, whereas Mutual Funds offer higher returns with higher risks. Finally, please make an informed decision about the option that suits you best.