LIC plans or Mutual Funds 

There is no comparison between LIC Plans and Mutual Funds. So there is no meaning in considering them. One is insurance with investment and the another is a pure investment. After investing, the policyholders cry that LIC is not giving returns as expected. You should not expect returns from LIC plans. If looking for the best returns, invest in mutual funds only. You know, the investor may not be able to sleep after investing in shares and sometimes mutual funds also, but after investing in LIC, total satisfaction.

After investing in LIC, the policyholder can take off his eyes and relax. LIC Of India returns may be lesser than the returns given by Banks and other Investment instruments, but total safety is there. LIC invests the premiums collected, invests mostly in Government schemes and other investments within India.

Mutual Funds have a Fund manager for each Fund to manage the fund during market hours. The Invest should also be very vigilant when the markets are open. The Fund manager may do his best to keep the fund within 10 funds, but at the same time, the investor also gets tense when the market becomes volatile. 

Whereas, investment in LIC plans is safe, as they invest in debt funds and in the share market at their own risk. The policyholder need not feel the risk at any point in time. The policyholder can relax as most of the LIC plans have a sovereign guarantee from the  Government of India. The main advantage of LIC Plans is Insurance, Tax Savings, and guaranteed returns. 

There are advantages and disadvantages to both products. The Investor should invest as per his needs and future requirements. He needs to have both LIC Insurance and Mutual Funds in his portfolio to reduce the risk of getting back the investments.