Creating long-term wealth doesn’t always require a large investment upfront. With the power of Systematic Investment Plans (SIPs) and LIC’s new mutual fund schemes, even a modest monthly contribution can grow into a significant corpus over time. In this article, we will explore how investing just ₹1,000 per month can help you build a fund of up to ₹86 lakh, the strategy behind it, and how you can get started with LIC Mutual Fund.
Whether you’re a first-time investor, a working professional, or planning your child’s future, this guide will offer clarity and practical advice using real data, projections, and tools. Let’s get started with the key insights.
LIC Mutual Fund Scheme
| Key Points | Details |
|---|---|
| Investment Amount | ₹1,000 per month via SIP |
| Duration | 30 years |
| Expected Returns | 12% annually (compounded monthly) |
| Total Investment | ₹3.6 lakh |
| Estimated Corpus | ₹86.35 lakh |
| Scheme Provider | LIC Mutual Fund |
Starting small doesn’t mean ending small. As we saw, investing just ₹1,000 per month in a LIC Mutual Fund SIP can potentially generate a corpus of over ₹86 lakh in 30 years. Thanks to the power of compounding, long-term discipline, and trusted fund management by LIC, your financial goals can become a reality.
Whether you’re planning for retirement, a child’s education, or wealth creation, the key is to start now and stay committed. LIC’s SIP plans offer an accessible, flexible, and effective path to long-term financial success.
What is LIC Mutual Fund?
LIC Mutual Fund, a subsidiary of LIC (Life Insurance Corporation of India), offers various mutual fund schemes designed for different investor needs. These schemes are regulated by SEBI and cater to individuals looking for long-term capital appreciation, wealth creation, and tax benefits.
LIC Mutual Fund offers:
- Equity Funds for high-growth potential
- Debt Funds for stable, low-risk returns
- Hybrid Funds combining equity and debt for balanced growth
You can start investing through Systematic Investment Plans (SIPs) with as little as ₹500, making it accessible for every income group.
see also: LIC Fixed Deposit Scheme: Start with ₹10,000, Get Interest Up to 6.25%
How ₹1,000 per Month Grows into ₹86 Lakh
Let’s break it down with a simple example.
Investment Scenario:
- Monthly SIP: ₹1,000
- Tenure: 30 years
- Expected Annual Return: 12%
Using the compound interest formula for SIPs:
Future Value (FV) = P × [((1 + r)^n – 1) / r] × (1 + r)
Where:
- P = Monthly investment = ₹1,000
- r = Monthly return = 12% / 12 = 1% or 0.01
- n = 360 months (30 years)
Future Value ≈ ₹86,35,049
That’s nearly 24x your invested amount of ₹3.6 lakh over three decades!
This is the power of compounding. The longer you stay invested, the more your money grows.
Why Choose LIC Mutual Fund SIPs?
Here are some compelling reasons why LIC’s SIP plans are worth considering:
1. Backed by a Trusted Brand
LIC is one of India’s oldest and most trusted financial institutions, offering decades of experience and customer trust.
2. Low Entry Barrier
Start with just ₹500 per month, making it ideal for beginners and small savers.
3. Professional Fund Management
Your funds are managed by qualified professionals with the goal of maximizing returns.
4. Wide Range of Schemes
From equity to hybrid to debt, choose what suits your risk appetite and goals.
5. Flexibility and Liquidity
SIPs are highly flexible. You can stop, pause, or increase investments at your convenience.
How to Start a SIP with LIC Mutual Fund
Starting a SIP is simple and paperless if you follow the steps below:
Step 1: Visit the Official Website
Go to the LIC Mutual Fund Website.
पोस्ट ऑफिस FD में पैसे निवेश करने से पहले जरूर जानें ₹2 लाख की FD पर कितना मिलेगा रिटर्न?
Step 2: Choose a Scheme
Select a scheme based on your risk profile and goal. For long-term wealth, consider LIC MF Flexi Cap Fund or LIC MF Large Cap Fund.
Step 3: Use the SIP Calculator
Estimate your returns and set your SIP amount using the online tool.
Step 4: Complete KYC
If you’re investing for the first time, complete your e-KYC online.
Step 5: Start Investing
Link your bank account and set up monthly auto-debit instructions.
Additional Tips to Grow Your Corpus
Start Early
Even a 5-year delay can significantly reduce your corpus. Starting at age 25 instead of 30 can make a difference of lakhs.
Increase SIP Annually
Top-up your SIP by 5%-10% each year to beat inflation and grow faster.
Stay Invested Long-Term
Avoid withdrawing mid-way unless it’s an emergency. Time in the market is better than timing the market.
Diversify Portfolio
Don’t invest only in one scheme. Spread your investments across equity, hybrid, and debt funds.
Risks Involved
While SIPs are generally considered safer than lump-sum equity investments, mutual funds are subject to market risks. Past performance does not guarantee future results.
Mitigation Strategy:
- Stay consistent with SIPs even during market downturns
- Choose diversified or hybrid funds if you are risk-averse
- Review fund performance every 1-2 years
see also: Now You Will Get 9% Interest on FD
LIC New Mutual Fund Scheme FAQs
Q1: Is ₹1,000 per month enough to create wealth?
Yes. With consistent investment over a long period like 30 years, even small SIPs grow into large amounts due to compounding.
Q2: Can I stop my LIC SIP in between?
Yes, SIPs are flexible. You can stop or pause anytime without penalties.
Q3: Which is the best LIC Mutual Fund scheme for SIP?
For long-term growth, LIC MF Flexi Cap Fund and LIC MF Large Cap Fund are often recommended. Always consult a financial advisor.
Q4: Is LIC Mutual Fund safe?
LIC Mutual Fund is SEBI-registered and backed by LIC. While market risks exist, it is among the most reliable AMCs in India.
Q5: Can I start a SIP offline?
Yes, you can visit LIC Mutual Fund branches or agents to start your SIP offline if preferred.
