LIC MF Mid Cap Fund

LIC MF Mid Cap Fund has delivered SIP XIRR of 16.49% (1Y), 18.08% (3Y), 18.91% (5Y), and 19.84% (7Y), which are below the category averages of 21.6%, 19.93%, 19.38%, and 19.29% for the same periods, respectively. The fund's point-to-point CAGR has underperformed the NIFTY MIDCAP 150 benchmark over 5Y (14.85% vs 17.46%), 7Y (19.47% vs 22.1%), and 10Y (13.56% vs 16.08%), though it has shown positive alpha of 1.55% (1Y) and 1.99% (3Y) against the benchmark. The fund's rolling returns (mean) are stable, ranging from 15.54% (1Y) to 16.8% (5Y), indicating consistent but moderate performance.

The fund exhibits a maximum drawdown of -42.81% with a drawdown duration of 801 days and a recovery period of 253 days, indicating significant downside risk during market stress. The Calmar ratio is low across all durations (0.363 to 0.3924), suggesting that the fund's returns do not adequately compensate for the depth of drawdowns. With a beta below 1 (0.93-0.96) and downside capture ratios around 90-95%, the fund is slightly less volatile than the benchmark but still experiences substantial losses in downturns.

The top 10 holdings account for approximately 29.32% of the portfolio, with the largest positions in Info Edge (4.24%), Federal Bank (3.43%), and Coforge (3.2%), indicating a diversified stock selection across sectors. Sector concentration is moderate, with the top 5 sectors (Industrial Products, Electrical Equipment, Capital Markets, Auto Components, Retailing) together representing 43.2% of the portfolio, which may expose the fund to sector-specific risks. The fund holds 48 stocks, providing reasonable diversification within the mid-cap space, but the top holdings are spread across various industries, reducing single-stock risk.

The fund's SIP XIRR has consistently lagged the category average across all time horizons, with the gap widening in the 1Y period (16.49% vs 21.6%) and narrowing in the 5Y and 7Y periods (18.91% vs 19.38% and 19.84% vs 19.29%, respectively). The fund has underperformed the benchmark in terms of CAGR over 5Y, 7Y, 10Y, 12Y, and 15Y, with negative alpha in those periods, indicating a long-term performance drag. However, the fund has shown positive alpha in the recent 1Y and 3Y periods, suggesting a potential improvement in performance relative to the benchmark.

This fund is suitable for investors with a high risk tolerance and a long-term investment horizon of at least 5-7 years, as mid-cap funds are inherently volatile and can experience significant drawdowns. Investors who are comfortable with underperformance relative to the category and benchmark in certain periods, but who value the fund's lower beta and downside capture, may consider this fund. It is not ideal for investors seeking top-quartile performance or those with a shorter time horizon, given the fund's recent underperformance and high drawdown risk.

• Positive alpha of 1.55% (1Y) and 1.99% (3Y) against the NIFTY MIDCAP 150, indicating recent outperformance on a risk-adjusted basis.
• Lower beta (0.93-0.96) and downside capture ratios (90-95%) than the benchmark, providing some downside protection in falling markets.
• Consistent rolling returns across all durations (15.54% to 16.8%), indicating stable performance without extreme fluctuations.

• SIP XIRR has been below the category average across all time periods, with a significant gap of 5.11% in the 1Y period, indicating underperformance relative to peers.
• Negative alpha over 5Y, 7Y, 10Y, 12Y, and 15Y periods, with the fund's CAGR lagging the benchmark by 2.61% (5Y) and 2.63% (7Y), suggesting long-term underperformance.