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Nifty And Sensex Plans Of This Index Fund Has Offered Up To 35.25% Returns On 5 years SIP
The passive investment approach is progressively gaining traction in the Indian mutual fund market. Many large fund firms have entered the market with some novel and intriguing products. Last year numerous fund firms have flooded the market with the cheapest funds. Here, we've highlighted two plans of an Index fund, compared their returns over the years and also given insights into the plan returns strategy. This fund is LIC MF Index Fund- Nifty and Sensex Plans. NAV taken as on 13th may 2022.
About the LIC MF Index Fund
This is an index fund launched on May 12, 2002, by the LIC Mutual Fund house. The fund is a large-cap open-ended medium-sized fund of its category.
The Fund is rated 3-Star by the CRISIL, and both the plan - Nifty Plan And Sensex Plan - have given above-average performance among the peer funds. Both the plans of the fund are highly risky plans for investments.
The financial, technology, energy, consumer staples, and materials sectors account for the majority of the fund's holdings. In comparison to other funds in the category, it has less exposure to the Financial and Technology industries.
Reliance Industries Ltd., HDFC Bank Ltd., Infosys Ltd., ICICI Bank Ltd., and Housing Development Finance Corp. Ltd. are among the fund's top holdings.
LIC MF Index Fund - Nifty Plan - Direct Plan-Growth
| AUM | NAV | Expense Ratio |
|---|---|---|
| Rs 51.07 Cr | Rs 91.1466 | 0.21% |
This Nifty Plan's expense ratio is close to its category average expense ratio but less than the average. This Nifty Plan aims to generate returns commensurate with the performance of the Nifty 50 by investing in the index stocks, subject to tracking errors. The benchmark of this plan is NIFTY 50 TRI. It has 99.69% investment in equities of which 89.88% is in large-cap stocks, and 1.27% is in mid-cap stocks. To start investment in this plan, the minimum investment amount required is Rs 5,000, Rs 500 for additional investment and Rs 1,000 for SIP. It charges 0.25% on redemption of investment within 7 days. Since its inception, it has delivered 11.32% average annual returns.
LIC MF Index Fund - Sensex Plan -Direct Plan-Growth
| AUM | NAV | Expense Ratio |
|---|---|---|
| Rs 102.778 | Rs 50.9 Cr | 0.37% |
The Sensex Plan's expense ratio is higher than its category average and the nifty plan. The Plan aims to generate returns commensurate with the performance of BSE Sensex by investing in the index stocks, subject to tracking errors. The benchmark of this plan is S&P BSE Sensex TRI. It has 99.93% investment in equities of which 90.5% is in large-cap stocks. Investment in this plan starts with a minimum investment amount required of Rs 5,000, Rs 500 for additional investment and Rs 1,000 for SIP. It charges 0.25% on redemption of investment within 7 days. Since its inception, it has delivered 11.50% average annual returns.
Returns Compared
Lump-Sum Investment Returns (Annual Average Returns)
| Tenure | Nifty Plan | Sensex Plan |
|---|---|---|
| 1 Year | 8.32% | 9.18% |
| 2 Year | 30.27% | 29.01% |
| 3 Year | 12.95% | 13.21% |
| 5 Year | 11.44% | 12.36% |
| Since Inception | 11.32% | 11.50% |
SIP Returns Compared (Absolute Returns)
| Tenure | Nifty Plan | Sensex Plan |
|---|---|---|
| 1 Year | -6.13% | -6.17% |
| 2 Year | 12.07% | 11.03% |
| 3 Year | 22.24% | 21.16% |
| 5 Year | 34.51% | 35.25% |
Disclaimer
Mutual fund investments are subject to market risk. Read all scheme related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.
