Fears of rate hikes and inflation are causing market instability. This is a fantastic chance to invest in the market for a long-term investor. A rare opportunity to invest in markets at lower levels is presented by weak markets. Finding the market's bottom is difficult. Given the current status of the markets, an investor can make a lump sum investment and then continue making investments through SIP. In current market conditions, the hybrid funds could be a great bet.
LIC MF Debt Fund is ranked No 1 by CRISIL and is also rated 5-star. The fund has a major holding in Debt, particularly in GOI Securities and in equities it has major holdings in the top 3 IT companies. Let's understand the Mutual Fund in detail for better understanding.
LIC MF Debt Hybrid Fund
LIC MF Debt Hybrid Fund turned 24 years last month. It was launched on 1 June 1998. It is a hybrid debt fund with the majority of holdings in Debt instruments. It is an open-ended Conservative hybrid mutual fund scheme from the house of LIC Mutual funds. The scheme has the primary objective to give steady income by investing at least 65 per cent of its portfolio in fixed-income securities. Exposure to equity and money market instrument can range go up to 35 per cent each in this fund. As the fund is a hybrid & 3-star by Value Research, respectively. CRISIL Hybrid 85+15 Conservative Index is the fund's benchmark.
Fund Details & Annualised Returns
The fund has worth Rs 62.09 crore of Assets Under Management (AUM), while the expense ratio is 1.34%, which is higher than its category average expense ratio. Its category average expense ratio is 0.83%. The Net Asset Value (NAV) of the fund as of July 1, 2022, is Rs. 70.8906.
One can start investing in this fund with a minimum required amount of Rs 5,000 for lump-sum payments and Rs 500 for SIP. For additional investment, the minimum investment amount required is Rs 1,000. Important to note, that there is no lock-in period is applicable here. For units in excess of 12% of the investment, the fund charges 1% for redemption within 365 days of the investment.
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It has given negative returns on 1 year investment.
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GOI Securities & IT Sector Investments
The fund under the Direct Plan-growth has major holdings in the technology in equity and GOI securities in Debt. These major technology holdings include 3 major private sectors IT Stock (Infosys, Tech Mahindra, L&T Infotech) and Government Of India (GOI) Securities in debt. It has also a major holding in Government Loan & Financial sector.
Top IT Companies Holdings as on May 31, 2022
As the fund is a hybrid fund, it has investments in both Equity and Debt instruments. However, it has the majority of investment in debts accounting for 78.27% out of which 78.17% are in government securities (G-Sec) and 0.1% are in low-risk securities. The fund invests 21.14% of its assets in domestic equities, of which 17.96% are large-cap companies, and 1.29% are mid-cap stocks. Fund's major sector holdings include Technology, Financial, Consumer goods, Energy, Automobile, Communication, & Healthcare.
Equity Holdings - Other than the 3 top IT stocks Infosys, Tech Mahindra, and L&T Infotech, the fund's major holdings are in ICICI Bank, SBI, Reliance Industries, HDFC Bank, Hindustan Unilever, Nestle India, Mahindra & Mahindra, Bharti Airtel, Abbott India, and Bharti Airtel PPE.
Debt Holdings - The majority of Debt holdings are in GOI securities, State/Central Development Loan, Treasury Bills, and Bonds/NCDs.
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