Home / Money / Personal Finance /  LIC Large & Mid Cap Fund offers over 14 per cent since inception CAGR
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With Long Term Capital Appreciation (LTCA) LIC Large & Mid Cap Fund, which invests predominantly in large and mid-cap stocks, has achieved a return of over 14% CAGR since its inception. By the fund house LIC Mutual Fund, the fund was introduced on February 25, 2015. As of July 29, 2022, the Regular Growth fund had outperformed its benchmark NIFTY 50-TRI index, which had returned 10.88%, with a higher 12.49% CAGR since its inception (February 2015). The Direct-Growth option, on the other hand, has outperformed its tier benchmark index, providing an excellent 14.03 per cent CAGR since its debut.

As of July 29, 2022, the LIC Large & Mid Cap Fund's compounded annual growth returns (CAGR) performance over the distinct time periods of 5 years, 3 years, and one year, respectively, stands at 11.44 per cent, 18.83 per cent, and 9.16 per cent. While the direct (G) option's CAGR for the various time frames of 5 years, 3 years, and one year are 13.18%, 20.68%, and 10.85%, respectively.

LIC MF Large & Mid Cap Fund
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LIC MF Large & Mid Cap Fund (

According to Value Research's data, the fund’s regular option now carries a 4-star rating with an expense ratio of 2.37% (as of 31-Jul-2022) and the direct option carries an expense ratio of 0.85%. With respect to the existing 26 schemes in the large and mid cap segment, the LIC Large & Mid Cap Fund CAGR compares strongly and has produced above-average returns. LIC Large and Mid Cap Fund AUM were INR 1,831.26 crores as of July 31, 2022, while the total Large and Mid Cap fund category had INR 1.17 lakh crores Net AUM.

The fund's direct option has produced a trailing return of 22.17% over the last three years as of the date of Value Research, which means that a SIP of 10,000 started in this fund three years ago would now have grown to 5.12 lakh. Since the direct (G) option has produced a trailing return of 14.36% over the past five years, a SIP of 10,000 put in this fund five years ago would have evolved into around 9.52 lakh today. The fund's direct (G) option has produced a trailing return of 14.82% over the past seven years, translating to an approximate 15.64 lakh rupees return on a SIP of 10,000.

LIC Large & Mid Cap Fund
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LIC Large & Mid Cap Fund (

For LIC Large & Mid Cap Fund, the minimum investment under the lump sum option is INR 5,000, and SIP contributions start at INR 1000 per month. The financial, technology, service, chemical, and energy industries are all represented in the fund's sector allocation. ICICI Bank Ltd., Infosys Ltd., HDFC Bank Ltd., Tata Consultancy Services Ltd., and Reliance Industries Ltd. are the fund's top 5 holdings. As of July 2022, the top 5 sectors for the LIC Large & Mid Cap Fund are banking (15.62%), IT & Software (9.67%), Chemicals & Petrochemicals (8.81%), Consumer Durables (8.69%), and Industrial Products (7.38 per cent). The other industries include retail, biotechnology, pharmaceuticals, gas, finance, leisure, capital markets, and petroleum products. 96.42% of the fund's assets are allocated to equities, of which 39.88% are large cap stocks, 38.73% are mid cap stocks, and 17.81% are small cap stocks.

The investment objective of the fund is “To generate long-term capital appreciation by investing substantially in a portfolio of equity and equity-linked instruments of large-cap and mid-cap companies," said LIC MF on its website. This fund is appropriate for investors seeking wealth growth with a long-term investment horizon of more than three years since equity funds are effective for creating long-term wealth. Investors with a relatively high-risk tolerance who prefer to invest in both large-cap and mid-cap stocks might think about contributing to this fund.

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