I know it can be very overwhelming at times when people are using all sorts of buzzwords which you do not fully understand. Let me assure you both LIC and index fund/ETF investing is very simple investing strategy and best part is it is truely passive. You do not have to monitor or manage it but it keeps giving you good returns. As the economy and prosperity of a country grows due to the collective efforts of humans through their hard work and intelligence the businesses that are either run by or employed by those people become more profitable which causes the share market to rise over time. When you buy an index fund you are basically buying basket of stocks through that one fund. The number of stocks and amount of each stock purchased depends on the type of index the fund follows. For example Vanguard Australian Share Index ETF tracks the S&P ASX300 index. That means it will buy the top 300 companies on the Australian stock exchange in proportions to their market weight. So if CBA has market weight of 8% and BHP 5% and Wesfarmers (coles, bunnings) 4% then for every $100 you invest $8 is invested in CBA shares, $5 is invested in BHP shares and $4 is invested in Wesfarmers shares and so forth. The beauty of index strategy is addition, removal change in weightage in the index is automatically done by the index fund. So it is self cleansing where new profitable companies replace old unprofitable companies over time. Hence, the top 300 companies can keep changing with time and those changes are automatically reflected through your investment in index fund. Old school LIC are very much like index fund in the sense that they invest in same companies that index fund invests in but they make minor changes depending on whether they like a particular company more than another company. Overall, the differences are minor and returns from both are very similar over the long term. The other difference is they operate through company structure which allows them to smooth dividends thereby giving more certainty on future income to expect. I would strongly recommend you have a look at Peter Thornhill's YouTube videos and buy his book Motivated Money and if possible attend his seminar. @Gockie can advise you when the next seminar is. It can take some change in mindset to start appreciating the benefits of investing in shares through a diversified portfolio. But that change can only happen through knowledge which unfortunately, you will have to put in the effort to gain. Good luck. Cheers, Oracle.