On the other hand, Government control is the con as well. Corruption and the arrogance to do anything willy nilly for some group for favors behind closed doors. LIC playing with investor money is probably worse than any other insurance player. LIC money is probably keeping the market afloat in bad market times. They use your money at the whim of government’s desires. They may use your money to bail out their friends and their companies. In the Big bazaar- Reliance saga, SBI played a crucial role, which resulted in enormous gains for Reliance, at the cost of tax payer money. Specifically, In case of SBI MF, SBI, in a growth fund paid dividends regardless of what retail investors want or was advertised, for “the corporation”.
Because of government support, they have no reason to play ball with you and will screw you, if they think they can get away with it(and most of the time, they can). They aren’t motivated to invest or grow or keep your money safe. It’s the “too big to fail” attitude. They’re basically a bigger BSNL. Only in cases of total economic collapse, investing with government mfs “may” help, assuming the government can help, at that point. But overall, it’s bad for the common people and nation as a whole.