LIC MF Infrastructure Fund: The country’s infrastructure sector has seen rapid growth in the last few years. And mutual funds investing in companies of this sector are also getting its benefit. LIC Mutual Fund’s Infrastructure Fund (LIC MF Infrastructure Fund) is also one such scheme, which has earned huge profits by investing in this sector. This scheme has shown its strength by more than doubling the wealth of investors in 3 years and more than tripling in 5 years. We will give detailed information about the returns of the scheme later, but first let us know some more important things about this scheme.
Open Ended Equity Scheme
LIC Mutual Fund’s Infrastructure Fund (LIC MF Infrastructure Fund) is an open-ended equity scheme that invests in companies associated with the infrastructure sector. The main objective of this scheme is to promote long term growth, so that investors can earn good profits on their capital.
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Past Performance of LIC Infrastructure Fund
What is the return (CAGR) on lumpsum investment?
– In 1 year: 73.48%
– In 3 years: 34.47%
– In 5 years: 29.58%
– From the inception of the scheme (in 16 years): 10.50%
Current fund value of lumpsum investment of Rs 1 lakh
– In 1 year: Rs 1,73,220
– In 3 years: Rs 2,42,730 (2.4 times growth)
– In 5 years: Rs 3,65,130 (3.6 times)
In 16 years (from the start of the scheme): Rs 5,20,280 (5.2 times)
How much profit did you get on SIP investment?
LIC MF Infrastructure Fund has also given huge profits to those investing through SIP. You can see its calculation here.
- Monthly SIP: Rs 10,000
- Total investment in 3 years: Rs 3.60 lakh
- Annualized return on SIP investment in 3 years: 47.26%
- Fund value after 3 years: Rs 6,90,701 (Rs 6.90)
- Monthly SIP: Rs 10,000
- Total investment in 5 years: Rs 6 lakh
- Annualized return on SIP investment in 5 years: 39.30%
- Fund value after 5 years: Rs 15,57,615 (Rs 15.57 lakh)
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Important things related to the scheme
A total of 97.44% of the corpus of LIC MF Infrastructure Fund is invested in equities. Its 19.30% share is invested in large cap, 23.09% in mid cap and maximum 55.05% in small cap stocks. The risk level of this scheme is very high due to heavy exposure to equities and majority of investments being made especially in small caps. The expense ratio of the scheme is 2.40% for the regular plan and 1.38% for the direct plan, which is quite high. The fund managers of the scheme are Yogesh Patil and Mahesh Bendre. Yogesh has more than 22 years of experience, while Mahesh also has more than 12 years of experience.
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Exit Load
– There will be no exit load on redemption of 12% units within 90 days.
– Redemption of more than 12% units within 90 days will attract 1% exit load.
– No exit load after 90 days.
minimum investment
One can start investing in LIC MF Infrastructure Fund with a lump sum investment of as little as Rs 5,000, and thereafter in multiples of Re 1. Whereas minimum SIP investment starts from just Rs 200.
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For whom is this scheme suitable?
The past returns of LIC MF Infrastructure Fund indicate the growth seen in the companies in the infrastructure sector of the country. Following the right investment strategy, this scheme has given good returns to investors in the long run. This scheme can be a better option for those investors who want to achieve capital growth in the long term by investing in the infrastructure sector. However, there is no guarantee that any equity fund will repeat its past performance in the future. Besides, the risk level of this scheme is also ‘very high’. Therefore, before deciding to invest, it is important to understand your risk appetite clearly. It also has to be seen whether this scheme of LIC MF is right according to your investment goals and risk profile or not.
(Disclaimer: The purpose of this article is only to provide information and not to advise investment in any fund. The past performance of a mutual fund scheme is not a guarantee of similar returns in the future. Any investment decision should be taken only after taking the advice of your investment advisor. Do.)
