Many people dream of building a substantial savings corpus, but often feel that it’s impossible without high income. However, with just a small monthly contribution, you can accumulate over ₹ 86 lakh by investing ₹ 1000 per month in a long-term savings plan. The Life Insurance Corporation of India (LIC), India’s most trusted insurance provider, offers a smart way to achieve this goal.
In this article, we’ll explore how LIC’s investment plans, particularly when paired with Systematic Investment Plans (SIPs) in mutual funds, can help you grow your money with discipline and time. We’ll walk through the steps, explain the math, and help you decide whether this plan is right for you.
LIC’s Great Scheme and Get ₹ 86 Lakh
| Feature | Details |
|---|---|
| Monthly Investment | ₹ 1,000 |
| Total Investment Period | 30 years |
| Expected Annual Return | ~12% (for mutual funds-based plans) |
| Final Maturity Amount | ₹ 86,00,000+ |
| Investment Type | LIC + SIP in equity mutual funds |
| Ideal For | Long-term savers, young investors, retirement planners |
Building a retirement fund or saving for big goals doesn’t require huge investments. With just ₹ 1,000 per month, the right mix of LIC protection and mutual fund SIPs can grow into over ₹ 86 lakh. Start early, stay consistent, and watch your money work for you.
This approach balances safety, growth, and long-term planning. If you’re serious about financial independence, start with this simple plan today. After all, success in wealth building comes from small, consistent steps over time.
Why Start with Just ₹ 1,000 a Month?
If you think ₹ 1,000 per month is too small to matter, think again. Thanks to the power of compounding, small amounts invested regularly over a long time can grow into a large sum.
Here’s a quick example:
- If you invest ₹ 1,000 per month for 30 years at an annual return of 12%,
- Your total investment = ₹ 3,60,000
- Your maturity value = ₹ 86,35,049
That’s the magic of compound interest. Your money earns interest, then that interest earns more interest. Over time, the effect snowballs.
see also: Post Office Scheme is Offering a Strong Interest Rate of 8.2%
LIC’s Role in This Investment Journey
LIC offers various endowment plans, money-back policies, and unit-linked insurance plans (ULIPs). However, most traditional LIC policies offer returns between 5-6% per annum. That’s where a combination strategy comes in.
LIC + Mutual Fund SIP Combo:
You can take advantage of LIC’s insurance coverage and also invest via a mutual fund SIP to grow your wealth faster. Here’s how:
- Buy a term plan from LIC for life insurance coverage (e.g., LIC Tech Term).
- Invest the rest (₹ 1,000/month) in a SIP of an equity mutual fund (like SBI Small Cap, Axis Growth Opportunities, etc.).
This way, you get financial protection + wealth creation.
Note: LIC also offers ULIPs like LIC’s SIIP which combine insurance and investment, but returns vary based on market performance.
Step-by-Step Guide to Start Investing ₹ 1,000 Monthly for ₹ 86 Lakh
Step 1: Start Early
Time is your biggest asset. The earlier you start, the more time your money has to grow. Even starting at age 25 vs. 30 can mean a difference of lakhs in maturity value.
Step 2: Choose a Good SIP Plan
Pick a direct plan of an equity mutual fund with consistent past performance. Suggested options:
- SBI Small Cap Fund
- Mirae Asset Emerging Bluechip Fund
- Axis Growth Opportunities Fund
Use platforms like Groww, Zerodha Coin, or Paytm Money to set up your SIP.
Step 3: Add LIC Term Insurance
Secure your family with a term insurance policy. LIC’s Tech Term Plan offers:
- Sum Assured: ₹ 50 lakh onwards
- Premium: As low as ₹ 300-400/month (for young policyholders)
Step 4: Stay Consistent
Stick to your SIP plan for 30 years without withdrawals. Avoid the temptation to redeem your funds early. Long-term discipline is the key.
Step 5: Track and Rebalance
Review your investments annually. If needed, rebalance your portfolio based on life changes or risk appetite.
Pros and Cons of This Approach
Pros
- Small monthly amount
- Huge corpus potential with compounding
- LIC term plan gives financial security
- Mutual funds are flexible and tax-efficient (ELSS options)
Cons
- Equity mutual funds are market-linked; returns are not guaranteed
- Long-term commitment needed
- Requires discipline and patience
Who Should Consider This Investment Strategy?
- Young professionals starting their career
- Parents planning for children’s education or marriage
- Individuals with low monthly surplus
- Anyone seeking high corpus with low input
This plan is especially great for first-time investors who want to build a habit of investing without overwhelming risk.
see also: What is the 7-5-3-1 Formula of SIP That is Making People Millionaires?
LIC’s Great Scheme FAQs
1. Can I really get ₹ 86 lakh with just ₹ 1,000 per month?
Yes, with a 12% annual return over 30 years, your investment can grow to over ₹ 86 lakh. SIPs in mutual funds make this possible due to compounding.
2. Is this a LIC plan or a mutual fund?
It’s a combination. LIC provides insurance coverage, while mutual fund SIPs help with wealth creation.
3. Is it safe to invest in mutual funds?
Equity mutual funds are subject to market risks, but over 15-30 years, they have historically delivered high returns.
4. Are returns from SIPs guaranteed?
No. Returns vary based on market conditions, but historically, good equity funds have given 10-15% per annum.
5. Can I increase my monthly SIP later?
Absolutely! As your income grows, you should consider increasing your SIP amount to achieve your goals faster.
