Clearly if risk free returns elsewhere were higher than they are presently, one might take a different view on that.
Unlike, say, a mining company, there after no hefty capital outlays and the business model is self-sustaining (indeed, some LICs should as Argo weight themselves towards an industrials allocation, companies which generally themselves are more sustainable and less capital intensive than the resources stocks equivalents).
A couple of things to watch out your when choosing an LIC to invest in are:
(1) gearing - whether the company is using leverage to invest, and if so, how much?; and
(2) liquidity - how easily can you buy and sell parcels of shares given the volumes traded?).