The Large and Mid-Cap Mutual Fund investment means the fund house will put your money into both large and mid-sized company stocks, based on their market capitalization. A mix of these 2 kinds of companies will offer you both security and good returns. Here the portfolio of the LIC MF Large & Mid Cap Mutual Fund SIP - Direct Plan has been discussed.
Large & Mid Cap Investment rationale and taxation
Generally, large-cap companies are known for more security, while mid and small-cap companies offer more upside. However, if you want to invest in the equity markets, but you have a low-risk appetite, then large-cap or large and mid-cap mutual funds SIPs will be suitable for you. It will also diversify your investment. According to SEBI regulation, a Large and Mid-Cap Mutual Fund will invest a minimum of 35% in large-cap stocks, while around 35% will be invested in the mid-cap companies. So, together, a minimum of 70% will be invested in the top 250 companies listed in the equity markets. Along with that, small-cap investments can give you lucrative returns in the near term.
"If the mutual fund units are sold after 1 year from the date of investment, gains upto Rs. 1 lakh in a financial year are exempt from tax. Gains over Rs. 1 lakh are taxed at the rate of 10%. If the mutual fund units are sold within 1 year from the date of investment, the entire amount of gain is taxed at the rate of 15%. No tax is to be paid as long as you continue to hold the units," Value Research mentioned.
LIC MF Large & Mid Cap Fund - Direct Plan
LIC MF Large & Mid Cap Fund - Direct Plan is one of the best bluechip mutual fund SIPs, available for investors, given lucrative upside in long term. The LIC MF Large & Mid Cap Fund - Direct Plan's NAV is quite low at the present time, it stood at Rs. 27.44, and its fund size is Rs. 1570.43 Crore. The fund size is lower, compared to some other funds. But the LIC MF house is a reputed fund house, so, it is a safe investment. The minimum SIP investment of this fund is Rs. 1,000.
The Expense ratio is 0.82%; which is lower than the category average is 0.98%, suitable to give you better profitability. This mutual fund SIP has been rated with 4 Star by the reputed rating agency Value Research. There will be an exit load charged, for units above 12% of the investment, and 1% will be charged for redemption within 365 days.
Absolute and annualized returns
LIC MF Large & Mid Cap Fund - Direct Plan's SIP's absolute returns are lucrative. In the last 1-year SIP return stood at 18.43%, in the last 2 years it has fetched 46.87% returns, in the last 3 years it has given a 56.48% returns, and in the last 5 years, it has fetched 70.4% returns. Annualized returns of this fund's SIP were 41.81% in the past 2 years, and 35.65 % in the past 1 year. As it is a Large & Mid Cap Fund investment, in the long-term, the profitability increases.
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 34.67%, in the last 2 years it has fetched 57.00% returns, in the last 3 years it has given 83.71% returns, and in the last 5 years, it has given a 136.79% returns. Additionally, in the past 1 year, the LIC MF Large & Mid Cap Fund - Direct Plan's annualized returns stood at 32.69% while the category average is 32.69%.
According to Value Research, in the past 3 years, Rs. 1 Lakh Investment Grown to Rs. 1.86 Lakh, and Rs. 10000 Monthly SIP Grown to Rs. 5.65 Lakh.
LIC MF Large & Mid Cap Fund - Direct Plan's Portfolio Turnover Ratio was 41.00%. This fund's equity holding is 96.82%, and 3.18% in others. The Fund's Giant Cap Investments is 36.61%, Large Cap Investments are 12.15%, Mid Cap Investments are 45.85%, and Small Cap Investments are 5.39%, according to Value Research.
The top 5 equity holdings of the LIC MF Large & Mid Cap Fund - Direct Plan's are, Infosys Ltd., ICICI Bank, HDFC Bank, Tata Consultancy Services Ltd., Avenue Supermarts, Tata Chemicals, Bajaj Finance, Reliance Industries, HCL Technologies, and Atul Chemicals. Financial, technology, and services, in these 3 sectors, the LIC MF Large & Mid Cap Fund's investments are the most.
Other available funds from the same fund house are LIC MF Equity Hybrid Fund, LIC MF Flexi Cap Fund, LIC MF Infrastructure Fund, LIC MF Large Cap Fund, LIC MF Tax Plan, LIC MF Unit Linked Insurance, and LIC MF Balanced Advantage Fund - Regular Plan.
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 January 21, 2022)