A Listed Investment Company (LIC) operates like a managed fund but instead of buying units you buy shares in the LIC on the stock exchange. The LIC invests in a range of other companies so with one purchase you can immediately diversify your investments.
LICs generally operate with relatively low management expense ratios so they can be a reasonably cost effective way to invest. Another similar type of investment is a Listed Investment Trust (LIT).
Management from one of the ASX's biggest LICs Australian Foundation Investment Company (AFI) talk about the benefits and characteristics of LICs in general.
A beginners guide to analysis and valuation of LICs from the analysts at Investsmart.
LICs are a way of getting exposure to a broader range of assets in a single transaction. Check out some basic information from Moneysmart.
Watch the ASX's video on explaining LICs, covering why they exist, the risks involved and a checklist for purchasing.
For the latest LIC news and updates on the sector, explore the Independent Investment Research website.
Another source of reports on LICs and LMIs provided by Bell Potter Securities and Independent Investment Research: Weekly indicative NTA's, quarterly reports and monthly updates
Before you purchase an LIC it is recommended that you consider their performance. Morningstar produces a monthly LIC report to help your research.
LICs can trade at a discount to their net tangible asset (NTA) values. This article from Cuffelinks explores the reasons why and what you should consider before buying an LIC at a discount.
Both LICs and managed funds have strengths and weaknesses in different markets. Check out the analysis from Graham Hand at Cuffelinks as he compares the two.
Follow the checklist of 10 things you need to consider when buying an LIC from the team at Livewire,
An overview from the ASX on the difference between LICs and LITs,
ETFs and LICs have much to offer but there are traps for the unwary. This Morningstar article explores how they differ and points out a few of the pitfalls.