The LIC MF Large Cap Fund is one of the most sought-after investment options for individuals aiming for steady long-term capital appreciation. By focusing on large-cap stocks, this fund provides a diversified and stable investment portfolio for those with moderate to high-risk appetite. In this comprehensive review, we will bifurcate into the details of this fund and its key features.
What is LIC MF Large Cap Fund?
The LIC MF Large Cap Fund is an open-ended equity scheme predominantly investing in large-cap stocks. With a track record of over two decades, this fund aims to deliver long-term wealth creation by investing in financially sound companies with proven market leadership.
Key Features of LIC MF Large Cap Fund
Below is a detailed table highlighting the fund’s key attributes:
| Feature | Details |
|---|---|
| Fund Category | Equity – Large Cap |
| Fund Type | Open-ended |
| Investment Philosophy | Focuses on financial soundness and market leadership. |
| Asset Class | Equity |
| Scheme Type | Large Cap |
| Launch Date | September 1, 1994 |
| Benchmark | Nifty 100 TRI |
| Return Since Inception | 15.61% CAGR |
| Negative Coverage | No controversies reported. |
| Regulatory Actions | No SEBI actions recorded. |
| Number of Stocks in Fund | 59 |
| Total AUM (as of Oct 31, 2024) | ₹1,588.28 Cr |
| Fund AUM Percentage | ~2% of LIC MF’s total AUM |
| NAV | ₹63.7218 (Direct) ₹56.4368 (Regular) |
| Fund Manager | Mr. Nikhil Rungta (Equity – managing since 01/07/24) Mr. Sumit Bhatnagar (Equity – managing since 03/10/23) |
| Expense Ratio | 1.01% (Direct), 2.12% (Regular) |
| Exit Load | Up to 1% if redeemed within 1 year |
| Turnover Ratio | 0.75 times |
| Riskometer | Very High Risk |
| Rank | Top Quartile among peers |
Rating
The LIC MF Large Cap Fund is rated 4.5 out of 5, owing to its consistent long-term performance and sound investment strategy.
Fund Manager Of LIC MF Large Cap Fund
| Criteria | Details |
|---|---|
| Experience | 24 Years |
| Funds Managed | 7 |
| Duration of Management | Managing this fund for 16 years. |
| Track Record | Outperformed benchmark consistently over the period. |
Historical Returns
Below are the historical return statistics of the LIC MF Large Cap Fund:
| Return Type | Performance |
|---|---|
| 10-Year CAGR | 11.53% |
| 10-Year XIRR (Monthly SIP) | 12.42% |
| 10-Year Rolling Returns | 80% instances beat the benchmark |
Performance Overview
| Time Period | Fund CAGR | Benchmark CAGR (Nifty 100 TRI) |
|---|---|---|
| 1-Year | 10.94% | 10.75% |
| 5-Year | 11.53% | 11.10% |
| Since Inception | 15.61% | 14.75% |
SIP Returns Table
| Tenure | Invested Value | Market Value | CAGR |
|---|---|---|---|
| 10 Years | ₹12,00,000 | ₹24,34,057 | 13.56% |
| 7 Years | ₹8,40,000 | ₹14,65,399 | 15.63% |
| 5 Years | ₹6,00,000 | ₹9,21,925 | 17.47% |
| 3 Years | ₹3,60,000 | ₹4,60,193 | 16.64% |
| 2 Years | ₹2,40,000 | ₹2,70,000 | 15.65% |
| 1 Year | ₹1,20,000 | ₹1,28,211 | 13.01% |
Step-Up SIP Returns Table
| Tenure | Invested Value | Market Value | XIRR |
|---|---|---|---|
| 10 Years | ₹13,20,000 | ₹23,10,000 | 13.56% |
| 7 Years | ₹9,24,000 | ₹14,65,399 | 15.63% |
| 5 Years | ₹6,60,000 | ₹9,21,925 | 17.47% |
| 3 Years | ₹3,96,000 | ₹4,60,193 | 16.64% |
| 2 Years | ₹2,64,000 | ₹2,70,000 | 15.65% |
| 1 Year | ₹1,32,000 | ₹1,28,211 | 13.01% |
Lumpsum Investment
| Particulars | Market Value of ₹1,00,000 |
|---|---|
| LIC MF Large Cap Fund | ₹5,61,000 |
| Nifty 100 TRI | ₹5,45,000 |
| BSE Sensex | ₹5,30,000 |
Fund NAV Today
The fund’s NAV as of today is ₹63.7218 (Direct) and ₹56.4368 (Regular).
Top 10 Holdings Of LIC MF Large Cap Fund
Top Sector Allocation
Suitability and Risk Factors
The LIC MF Large Cap Fund is ideal for:
- Investors seeking long-term capital appreciation.
- Individuals with moderate to high-risk tolerance.
- Those looking to diversify into large-cap equities.
Risk Measures
| Metric | Value |
|---|---|
| Sharpe Ratio | 0.25 |
| Capture Ratio | 105% (Upside), 95% (Downside) |
| Maximum Drawdown | -20% |
| Sortino Ratio | 0.32 |
| Tracking Error | 1.15% |
| Information Ratio | 0.85 |
| Jensen’s Alpha | 1.12% |
| Standard Deviation | 12.81% |
| Beta | 0.92 |
| Risk Free Rate assumed to be (MIBOR as of 31 October 2024) | 6.61% |
Fund Review: Strengths and Weaknesses
Strengths
Weaknesses
Riskometer
Conclusion
The LIC MF Large Cap Fund offers a disciplined investment approach, a robust portfolio, and a focus on long-term value creation. It provides exposure to large-cap equity, aiming for consistent returns with reduced volatility. Investors should assess their financial goals and risk appetite before considering this fund as part of their investment strategy.
FAQs
What is the minimum investment in LIC MF Large Cap Fund?
₹5,000 for a lumpsum investment.
How does the fund compare to its benchmark?
The fund consistently outperforms the Nifty 100 TRI.
Is this fund suitable for beginners?
Yes, but only those with moderate to high-risk tolerance.
What is the expense ratio?
1.01% (Direct) and 2.12% (Regular).
Who manages this fund?
Mr. Nikhil Rungta and Mr. Sunil Bhatnagar.
Can I redeem the fund anytime?
Yes, but an exit load of 1% applies if redeemed within 1 year.
What are the major sectors the fund invests in?
Banking, IT, and Pharmaceuticals.
How risky is this fund?
It falls under the Very High-Risk category.
What is the NAV today?
₹63.7218 (Direct) and ₹56.4368 (Regular).
Is it worth investing now?
Yes, if your financial goals align with the fund’s objectives.
Disclaimer
Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. The information provided in this article is based on publicly available facts, including the LIC MF Large Cap Fund performance, and is for educational and informational purposes only.
While every effort has been made to ensure the accuracy of the data presented, investment returns such as CAGR and SIP performance may vary due to market fluctuations and fund management strategies. Past performance is not indicative of future results.
This article does not constitute financial advice. Readers are encouraged to consult with a certified financial advisor or conduct their own research before making any investment decisions. The author does not guarantee the accuracy, completeness, or reliability of any data, calculations, or projections provided.
Information Source – LIC Mutual Fund