This Large & Mid-Cap Mutual Fund By LIC Given Upto 117% Return, Should You Invest?

Large & Mid-cap mutual fund SIPs can offer both security and good returns at the same time. Here, the portfolio of a Large & Mid-Cap mutual fund SIP, which was rated by Crisil, has been discussed.

Large & Mid-Cap mutual fund investment rationale

Large and mid-cap mutual funds will invest your money in large-cap and mid-cap company stocks, which have the potential to grow in the future. Large-cap or bluechip stocks are the top 100 listed companies in the equity markets, with a market capitalization of 20,000 crore or more. The mid-cap stocks will have a market capitalization between Rs. 5,000 crore and less than Rs. 20,000 crore. These two segments of stocks do not have great development scopes in the very near term, however, they will offer you security. In long term, like around 4 years, they show their best potential.

LIC MF Large & Mid Cap Fund - Direct Plan

LIC MF Large & Mid Cap Fund - Direct Plan is popular SIP investment among investors. LIC MF Large & Mid Cap Fund - Direct Plan's NAV stood at Rs. 26.60; with a low unit price you can obtain good numbers of unit of this fund. However, the fund size is Rs. 1601.49 crore, while the Expense Ratio (ER) is 0.82%; marginally lower than the category average which is 0.97%. The Expense Ratio (ER) is the percentage, the fund house will use your money for its official management expenses.

This mutual fund SIP has been rated with 3 Star by reputed rating agency Crisil.

Absolute and annualized returns

LIC MF Large & Mid Cap Fund - Direct Plan's SIP's absolute returns are most lucrative in the long term. In the last 1-year SIP return stood at 11.05%, in the last 2 years it has fetched 37.87% returns, in the last 3 years it has given a 48.46% returns, and in the last 5 years it has fetched 62.55% returns. Annualized returns of this fund's SIP were 34.15% in the past 2 years, and 27.33% in the past 3 years.

LIC MF Large & Mid Cap Fund - Direct Plan's absolute mutual fund returns are highest in 5 years term. In the last 1 year return stood at 27.28%, in the last 2 years it has fetched 48.30% returns, in the last 3 years it has given 83.69% returns, and in the last 5 years it has given 117.30% returns. Additionally, in the past 1 year, the LIC MF Large & Mid Cap Fund - Direct Plan's annualized returns stood at 27.28%, beating the category average marginally which is 25.25%.

Portfolio

LIC MF Large & Mid Cap Fund - Direct Plan's equity holding is 97.29%, and the fund invests 2.71% in other sectors. The Fund's Large Cap Investments are 32.35%, Mid Cap Investments are 34.99%, Small Cap Investments are 20.8%, and 9.15% investments are allocated in other funds, among total 65 stocks.

The top 10 equity holdings of the LIC MF Large & Mid Cap Fund - Direct Plan's are, ICICI Bank Ltd., Infosys Ltd., HDFC Bank Ltd., Avenue Supermarts Ltd., Bajaj Finance Ltd., Tata Chemicals Ltd., Atul Ltd., Axis Bank Ltd., Reliance Industries Ltd.

Other funds under this category are, Navi Large & Midcap Fund - Direct Plan, Quant Large, and Mid Cap Fund - Direct Plan, UTI Core Equity Fund - Direct Plan, etc, and these too are rated by Crisil.

(Also read:  This Flexi-Cap Mutual Fund Ticked Return Upto 68%: Crisil Rated)

Disclaimer

Investing in equities/mutual funds/SIPs poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, and the author are not liable for any losses caused as a result of decisions based on the article.

(Data mentioned as on February 11, 2022)