Should I withdraw LIC policy and invest in mutual funds

Life insurance and investments are two very different things and should not be mixed with each other. We always suggest having maximum life insurance cover through term insurance plans and investing in mutual funds for wealth creation purposes.

We do not know what kind of LIC policies you have, but, if these are regular endowment plans or money back plans then you should withdraw/ make it paid up and invest the proceeds / or the future premium amounts in mutual fund schemes for meeting your different life goals. And for securing your life, you must buy term insurance plans with adequate life cover (10-12 times your annual income).

For your lump sum investment in mutual funds, I may suggest you to invest in large and midcap funds as your investment time horizon is 20 years. You can invest in Mirae Asset Emerging Bluechip Fund and Canara Robeco Emerging Equities Fund.

Please check these fund details here – Mirae Asset Emerging Bluechip Fund and Canara Robeco Emerging Equities Fund

Hope the above is helpful.