LIC MF Focused Fund
Direct · GrowthAI Summary
LIC MF Focused Fund has consistently outperformed the NIFTY 50 across all measured periods, with a 3Y fund CAGR of 8.86% versus the benchmark's 4.9% and a 5Y CAGR of 7.19% versus 4.65%. However, its SIP XIRR trails the category average at every horizon — 11.13% vs 15.86% over 3Y and 14.26% vs 15.55% over 5Y — indicating benchmark-beating but peer-lagging returns. The 1Y XIRR of 7.68% is notably below the category average of 11.2%.
The fund exhibits strong downside protection with downside capture of 82.69% over 1Y and 92.59% over 3Y, well below its upside capture of 94-98%, which explains its positive alphas of 3.89% (3Y) and 2.46% (5Y). Beta of roughly 0.93-0.96 across periods confirms it moves slightly less than the market. The Calmar ratios of 0.35-0.41 across horizons reflect moderate risk-adjusted efficiency, and the fund has experienced 4 drawdown events exceeding 10%.
The 28-stock focused portfolio is led by Tata Motors Passenger Vehicles (7.25%) and Tata Motors (4.41%), giving the Tata Motors group a combined 11.66% weight. Auto-linked exposure is substantial — Auto Components (15.8%), Automobiles (9.6%) plus related names like Bharat Forge — totaling roughly a quarter of the portfolio in the auto ecosystem. Banks (10.7%) provide some balance, but the concentrated auto and cyclical tilt increases sector-specific risk.
Against focused-fund peers, the fund underperforms on SIP XIRR at all horizons, trailing the category average by roughly 3-5 percentage points over 3Y and 7Y. Its benchmark outperformance is driven by defensive characteristics rather than aggressive alpha generation, with 10Y alpha of just 0.99% suggesting the edge has narrowed over longer periods. Calendar year returns show uneven consistency, ranging from -2.47% in 2018 to 27.91% in 2021.
This fund suits investors seeking market-linked returns with below-market downside in a focused, actively managed portfolio, and who already hold broader diversified funds. A minimum horizon of 5-7 years is appropriate given the cyclical auto-heavy portfolio and the need to ride out drawdowns. Moderate risk tolerance is required, as the concentrated sector bets can cause periods of significant underperformance versus both peers and the benchmark.
- Consistent alpha over NIFTY 50 across 1Y, 3Y, 5Y and 7Y horizons, including 8.74% alpha in the 1Y period when the benchmark fell 10.57%
- Superior downside capture (82.69% over 1Y, 92.59% over 3Y) relative to upside capture, offering better capital protection in weak markets
- Low expense ratio of 0.54% for an actively managed focused fund
- SIP XIRR trails the focused-fund category average at every horizon, lagging by 4.73 percentage points over 3Y (11.13% vs 15.86%)
- Heavy concentration in the auto ecosystem — Tata Motors entities alone at 11.66% and auto-linked sectors near 25% of the portfolio — exposes investors to cyclical sector risk
Generated on 13-10-2026, 3:11 AM. Verify before investing.
Gives more importance to longer time periods (10Y, 20Y) than shorter ones (1Y, 3Y). This balances out recent outperformance and gives a more realistic picture of what long-term returns might look like.
The largest peak-to-trough decline in the fund's NAV. Shows the worst-case loss an investor would have experienced at any point in the fund's history.
If you invested ₹1,00,000 every month via SIP, here's how this fund has historically performed across different time horizons.
| Duration | Invested | Median Value | XIRR | Min XIRR | Max XIRR |
|---|---|---|---|---|---|
| 1 Year | ₹12.00 L | ₹12.56 L | 13.0% | -55.0% | 78.0% |
| 3 Years | ₹36.00 L | ₹44.49 L | 15.4% | -2.1% | 33.7% |
| 5 Years | ₹60.00 L | ₹85.42 L | 14.2% | 4.1% | 23.7% |
| 7 Years | ₹84.00 L | ₹1.35 Cr | 13.5% | 8.6% | 19.0% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | NIFTY 50 | Category avg | Fund edge |
|---|---|---|---|---|
| 1 Year | 13.0% | 14.3% | 11.2% | -1.3% |
| 3 Years | 15.4% | 11.0% | 15.8% | +4.4% |
| 5 Years | 14.2% | 10.4% | 15.5% | +3.8% |
| 7 Years | 13.5% | 10.6% | 15.1% | +3.0% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 12.3% | 8.5% | -29.9% | 85.9% | 0.35 | 0.91 | 78% | — | — |
| 3 Years | 14.6% | 14.6% | 5.4% | 31.1% | 1.89 | 168.56 | 100% | — | — |
| 5 Years | 14.3% | 14.2% | 6.4% | 24.5% | 2.12 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +7.47 | 0.93 | 92.5% | 81.7% | -2.7% | -11.4% |
| 3 Years | +2.77 | 0.95 | 96.9% | 92.3% | 8.1% | 5.3% |
| 5 Years | +1.83 | 0.95 | 96.0% | 93.1% | 6.4% | 4.4% |
| 7 Years | +2.24 | 0.94 | 94.5% | 91.5% | 12.2% | 10.2% |
| 10 Years | +0.74 | 0.92 | 91.6% | 89.8% | 8.8% | 8.2% |
| 12 Years | +0.52 | 0.92 | 91.6% | 89.8% | 7.3% | 6.8% |
| 15 Years | +0.32 | 0.92 | 91.6% | 89.8% | 5.8% | 5.4% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Tata Motors Passenger Vehicles Ltd. | 7.25% |
| 2 | Tata Motors Ltd. | 4.41% |
| 3 | Garware Hi-Tech Films Ltd. | 4.13% |
| 4 | Bharat Forge Ltd. | 4.04% |
| 5 | State Bank of India | 4.04% |
| 6 | Oracle Financial Services Software Ltd. | 4.03% |
| 7 | ICICI Bank Ltd. | 3.94% |
| 8 | InterGlobe Aviation Ltd. | 3.93% |
| 9 | The Phoenix Mills Ltd. | 3.53% |
| 10 | NTPC Ltd. | 3.48% |