The LIC revival: what you need to know

One category of an investment product that’s been powering ahead despite the recent market volatility is the Listed Investment Company, or LIC. LICs have been around for decades, being a collective vehicle that allows retail investors to get exposure to a wide spread of holdings that could include shares, property, and interest bearing deposits via one entity that can easily be bought and sold. LICs are essentially listed managed funds, and win out over traditional managed funds on fees and liquidity. Moreover, most LICs are companies that distribute income via fully franked dividends on which the 30 per cent company tax is already paid, so it’s a tax boon for savvy, income-seeking investors. Since they are listed on ASX, LICs are also more transparent than managed funds as they must comply with ASX corporate governance and reporting requirements. AFIC, the Australian Foundation Investment Company, is one of the oldest and best known, and sits on some $6 billion worth of blue chip stocks on behalf of a raft of mostly retired retail investors. Continue reading: (VIEW LINK)