LIC Pension Secured Fund

Read on to know more about the LIC Pension Secured Fund.

What is LIC Pension Secured Fund?

LIC Pension Secured Fund is one of the investment funds under LIC New Pension Plus 867. The fund mainly invests in government securities, high-quality debt instruments, corporate bonds and to a lesser extent equities. By implementing a diversified portfolio across different asset classes, the fund is able to reduce the impact of stock market swings and still have the potential for growth over a long period of time. It is considered an excellent option for people who are nearing retirement or those who, for one reason or another, prefer to safeguard their capital instead of trying to build it aggressively.

As the fund is managed by LIC, investments are taken care of by experienced fund managers who modify the portfolio in line with market conditions and regulations. LIC Pension Secured Fund is for policyholders to create a retirement fund and a less risky investment at the same time.

Features of LIC Pension Secured Fund

LIC Pension Secured Fund is a retirement planning product that caters to conservative investors through the LIC New Pension Plus plan. Here are some of the primary aspects:

• Conservative Asset Allocation: Most the investments are allocated to very secure fixed-income instruments like government securities, corporate bonds, and money market instruments. Equity allocation to high-risk stocks ranges from minimal to zero.

• Capital Protection: Apart from growing your retirement nest egg, it also safeguards your fund from drastic market declines, So ensuring you have steady, compounding growth.

• Fund Switching: Policyholders are allowed to switch funds whenever they want(for example, among Secured, Balanced or LIC Pension Growth Fund), per their comfort with risk and the situation of the market.

• Guaranteed Additions: Some of the LIC unit-linked pension plans provide guaranteed increase in the fund value at certain durations of the policy term, subject to the regular payment of premiums.

• Market-Linked Returns: The returns are conservative yet linked to the performance of debt markets, which means that over a long period, your investments will at least match, if not exceed, the returns of traditional fixed deposits.

LIC Plans Offering LIC Pension Secured Fund

Currently, the LIC Pension Secured Fund is available under the following pension ULIP:

LIC New Pension Plus 867

LIC New Pension Plus is a unit-linked pension plan that offers the policyholder a way to accumulate retirement savings through market-linked investments. It gives investors multiple fund options, including the Pension Secured Fund, from which they can choose a fund that suits their risk preference and their retirement planning.

It also allows policyholders to switch between funds to suit their investment strategy as the market conditions and their life stages change.

Benefits of LIC Pension Secured Fund

The LIC Pension Secured Fund offers a variety of benefits to those seeking a safe and disciplined approach to investing for their retirement.

Lower Investment Risks: The fund’s investment in debt securities and government bonds reduces the risk to investments compared to funds with a high proportion of shares.

Steady long-term growth: The returns might not be eye-popping, but the goal is steady long-term growth, and that can go a long way toward building your retirement wealth.

Perfect for Conservative Investors: If you are an investor who prefers safety and stability to aggressive returns, this fund might be a good fit for your financial goals and risk tolerance.

Portfolio Diversification: The fund invests in a range of asset classes which can help to spread risk and improve the stability of returns over different market cycles.

Retirement Corpus Creation: A disciplined investment plan coupled with professional fund management and long-term compounding can create a reliable corpus for future financial security.

Summing Up

The LIC Pension Secured Fund is a perfect choice for people who want to take the safest way to their retirement planning. The focus on principal protection, regular growth and risk management are the important channels through which it helps investors comfortably build their retirement corpus. LIC New Pension Plus is a fund that offers a good mix to those who want to be financially independent and prepared for their retirement over a period of time.

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