Comparison of LIC Mutual funds and SBI Mutual funds - A detailed comparison of 2025
It may be difficult to select the appropriate mutual fund in India in 2025, particularly between such giants as LIC Mutual Funds and SBI Mutual Funds. They both are very old and have a solid coverage and schemes. These two are usually compared by investors on the basis of reliability, performance and innovations. In this ultimate guide, we are going to consider the key features of both, including their performances, costs, safety and peculiarities that will assist you to make a choice as to what one is better to utilize regarding your purpose.
What Are LIC Mutual Funds?
LIC Mutual Fund is a company that was initiated in 1989 and is marketed by LIC of India which is the largest life insurer in the country. It has equities, debt, hybrid and ELSS and liquid funds. Majorities of investors select this AMC due to the good brand trust and the legacy of LIC.
Highlights of LIC Mutual Funds
- Supported by Government-owned LIC of India.
- Broad selection of funds to various risk levels.
- Emphasize on long term wealth generation.
- Strong offline presence, particularly in the tier 2 and 3 cities.
What Are SBI Mutual Funds?
The State Bank of India is the largest bank in India which promotes SBI Mutual Fund. It is a long-standing company, having been launched in 1987 and offers one of the largest asset management companies. SBI Mutual fund has a combination of both traditional and innovative funds and has a reputation of good compliance and service.
Highlights of SBI Mutual Funds
- Supported by SBI, providing stability and reach.
- Fund management award winning.
- Large variety of index, equity, debt and hybrid schemes.
- Its comprehensive investor services are digital.
Did you know? Both SBI Asset Management and LIC are financial powerhouses as they both have funds worth more than [?]5 lakh crore.
Comparison of Fund Performances over the last few years
One of the principal metrics is performance. By the beginning of 2025, the funds of both AMCs are in the top quartile of segments. The table below shows their best performing schemes within a period of three years (data as at March 2025):
| Scheme | 3 Year CAGR (LIC MF) | 3 Year CAGR (SBI MF) |
|---|---|---|
| Large Cap Equity | 15.1 percent | 17.2 percent |
| Flexi Cap | 14.8 percent | 16.3 percent |
| Hybrid Aggressive | 10.2 per cent | 12.6 per cent |
| Corporate Bond | 7.9 percent | 7.7 percent |
| Liquid Fund | 5.0 percent | 5.2 percent |
Quick Facts
- The returns of SBI mutual funds of equities funds were slightly improved in 3 years.
- The debt and hybrid funds of LIC MF are still very popular among conservative investors.
What are the Pros and Cons of LIC Mutual Funds?
Pros
- Extremely strong belief in the brand history of LIC.
- Better alternative to risk averse investors.
- Frequent dividend payouts options in conventional plans.
- Defence in smaller cities and rural India.
Cons
- A few less choices in new age passive or international funds.
- App journeys, which are moderate regarding digital experience, need to be improved.
- There are selling funds that do not perform well in terms of categories.
What are the Pros and Cons of SBI Mutual Funds?
Pros
- Top of the class research and fund management teams.
- International, thematic to index ETFs.
- Further developed digital platforms, rapid application-based transactions.
- Established history in the equity and hybrid funds.
Cons
- Fund house is very big, schemes may get overcrowded.
- Chasing quality risk of popular funds.
- Certain under performance of PSU-dominant funds at market cycles.
Insider Opinion: Financial planners in Mumbai say that the young investors are now opting SBI Mutual Funds as a form of diversification and the retirees or LIC policyholder would tend to remain with LIC MF due to trust.
People Also Ask
Q: Which one is safer LIC Mutual fund or SBI Mutual fund?
A: They are both safe, regulated by SEBI, and practice sound principles, but SBI MF is larger in size and more diversified.
Q: Which is older between LIC and SBI fund house?
A: The two funds are two years old, as SBI Mutual Fund was opened in 1987, and LIC MF was opened in 1989.
Q: What are the types of funds available?
A: Both the AMCs have finances towards various requirements. Here’s what you find:
Popular Fund Categories at LIC mutual fund:
- Equity (large cap, flexi cap, value, tax saver ELSS)
- Hybrid (compromising, mixed benefit)
- Debt (long term, gilt, liquid, short term)
- Solution-oriented (retirement, children gift).
Popular Fund Categories at SBI Mutual Fund:
- Equity (bluechip, focused, midcap, ESG, international)
- Passive (index, gold, ETFs)
- Debt Corporate, duration, liquid (Debt)
- Thematic and sector funds
LIC Mutual Fund is also putting more index funds and ETFs in 2025, yet SBI MF already has more variety in new-age and global themes.
What is the difference between Fees and Charges?
Funds have a mutual fund fee, which affects the returns taken home.
- Equity funds LIC MF: 1.7-2.2 percent (regular), 0.8-1.1 percent (direct)
- SB MF equity funds: 1.6-2.1 percent (regular), 0.7-1.1 percent (direct)
Similar are the debt fund costs, ranging between 0.5 and 1.2 percent (ordinary)
- No load, exit only in order to redeem (mostly 1 percent in case it is redeemed within one year).
Both have been harmonizing their cost to SEBI requirements in 2025. Direct plans save on expenditure by investors.
People Also Ask
Q: Which is less expensive LIC or SBI Mutual Fund?
A: The ratio of expenses is nearly equivalent, although the direct plans of SBI MF are slightly less in relation to a few classes.
How Customer Support and Accessibility?
LIC MF Customer Service
- Good network of offline representatives and branches.
- Simplistic mobile released in 2024, enhancing and has yet to catch up.
- High-quality services to senior citizens and non-metro investors.
SBI MF Customer Service
- Digital-first, highest-ranking investor application (2025 version).
- Chatbot 24x7, redemption / statement on-site, sophisticated SIP functionality.
- Long-term support of bank branches due to the presence of SBI countrywide.
What are the Accessibility Comparison of both the Funds?
| Parametric | LIC Mutual fund | SBI Mutual fund |
|---|---|---|
| Online Application Experience | Average | Very good |
| Branch and Agent Network | High | High |
| Rural/Semi Urban Reach | Very Strong | Strong |
| Do It Yourself Digital Transactions | Medium | Very High |
Did you know? In a recent survey by ET, 76 percent of investors rated the experience of using the app of SBI mutual fund as very convenient as compared to 53 percent of LIC MF.
What Has the best offer to SIP Investors?
Disciplined investing is popular in India with the use of Systematic Investment Plans (SIP).
- The two AMCs have flexible SIP (monthly, quarterly, annual).
- Minimum SIP [?] 500 on most funds, no significant divergence.
- SBI MF offers additional calculators, SIP pause/ resume, and notifications on the app.
- LIC MF increasing, now SIP top-up facility on most equity plans.
People Also Ask
Will I be able to redeem with LIC Mutual fund to SBI Mutual fund?
No, no switching directly is permitted. You have to sell one and invest in another taking into account tax considerations.
What of Risk Management and Transparency.
- Both of the AMCs are registered by the SEBI, and the level of compliance is high.
- Monthly Disclosure of portfolios through websites.
- Existence of all the big money is risk-o-meter-labeled (2025 norms).
- Both of these are effective in terms of redressing of grievance and escalation.
Expert Analysis: It is advisable that people should use direct plans and go through fact sheets of both fund houses before they decide on the same, especially in the year 2025 when it is new to the investor.
Extra Perks and New Insights in 2025.
New Initiatives of LIC Mutual Fund.
- Introducing additional passive and ESG themed funds.
- Enhanced application support of new KYC and tax applications.
- Better support in LIC MF Ease portal.
- Bringing fintech partners on board to reach digitally.
SBI Mutual Fund Innovations
- Beta Completed AI advised in mobile app.
- New global index funds, such as Nasdaq S and P 500.
- Association with UPI apps to make instant SIP.
- ESG scheme sustainability reports.
What Do You Select between LIC and SBI Mutual Funds?
It depends on your needs:
- SBI Mutual Fund is on the lead in terms of broader range of funds, increased speed, and digital tools.
- LIC Mutual Fund is a secure option in order to be trusted, be legacy, and a brand.
- They are both dependable, and their returns are similar in the mainstream funds.
What are the application of LIC Mutual Funds?
- New investors in small cities.
- Focus on conservative portfolio and fixed income.
- Already insured with LIC insurance.
When to Invest in SBI Mutual Funds?
- Emerging professionals, technology embracing investors.
- Global, theme or passive investor.
- Pursuing innovative digital and portfolio analytics.
Comparison Table LIC Mutual Fund vs SBI Mutual Fund
| Characteristic / Value | LIC Mutual Fund | SBI Mutual Fund |
|---|---|---|
| Sponsor | LIC of India | State Bank of India |
| Launch Year | 1989 | 1987 |
| Assets Under Management | [?]68,000 crore (2025) | [?]8,30,000 crore (2025) |
| Number of schemes | 30+ | 80 + (including ETFs/International) |
| Leading Strength | Trust & reach | Fund range & digital tools |
| Digital App Experience | Developing | Superior |
| Best performing type of fund Type | Debt, Hybrid | Equity, Index, Global |
TLDR or Quick Recap
- Both SBI mutual fund and LIC mutual fund are reputable, big and SEBI registered fund houses.
- SBI MF has more funds, digital platforms and greater recent returns particularly with respect to equities and index funds.
- LIC MF is useful in terms of conservative investment, simplicity and its wide off-line presence.
- The best option will be based on how risky you are, digital requirements, and future investment targets in 2025.
Frequently Asked Questions (FAQs)
Q1: Does SBI mutual fund out perform LIC mutual fund?
A 1: SBI mutual fund is more diversified and better digitized, and the decision about which is better will depend on your needs in investment and the type of fund you want to invest in.
Q2: What is the possibility of investing in both the SBI and the LIC Mutual fund?
A2: Yes, you are allowed to have more than one AMC in your portfolio.
Question: Are my money, with these companies, safe?
A3: They both are governed by SEBI and have custodians and your investment is not in danger due to the market risks but the bank risks.
Q4: What AMC do beginners recommend?
A4: A4 is the LIC MF targeted towards conservative investors, SBI MF targeted towards individuals who would be open to a new type of fund and digital platform.
Q5: What are ELSS options in these two fund houses?
Both have popular ELSS (Tax Saver) funds that have three-year lock-in.
Q6: Should the SIPs in these funds be initiated in 2025?
A6: Yes, SIPs are best initiated young and maintained in well rated funds of either of the AMC.
Sources
- LIC Mutual Fund Company Website.
- SBI Mutual Fund Official Web Site.
- Morningstar India Investment Fund Research.
- SEBI Regulations of Mutual Funds.
- ET Wealth Mutual Fund Survey 2025
