LIC MF Small Cap Fund
Direct · GrowthAI Summary
LIC MF Small Cap Fund has delivered strong long-term SIP returns, with a 5Y XIRR of 24.23% and 7Y XIRR of 23.81%, outperforming the category average SIP XIRR of 22.85% and 21.78% respectively. However, shorter-term SIP performance lags peers, with the 1Y XIRR of 16.53% and 3Y XIRR of 18.91% falling below category averages of 17.6% and 20.13%. Against the NIFTY SmallCap 250 benchmark, the fund has generated consistent positive alpha across all periods, including 10.86% alpha over 1Y and 4.52% over 3Y.
The fund shows a favorable asymmetry between upside and downside capture, with 10Y downside capture of 77.24% versus upside capture of 82.14%, indicating better-than-market loss protection. The maximum drawdown of -0.46% with a lengthy 799-day duration and 286-day recovery suggests the fund experienced a prolonged but shallow drawdown period. Calmar ratios between 0.41 and 0.49 across 1Y to 7Y horizons indicate moderate risk-adjusted returns, with the 5Y Calmar of 0.4874 being the strongest.
The portfolio holds 51 stocks with a diversified top-10 allocation, where the largest holding Garware Hi-Tech Films at 4.86% is followed by Avalon Technologies at 4.14%. Sector exposure is spread across industrials (14.4%), electrical equipment (7.9%), and auto components (7.3%), with no single sector dominating excessively. The holdings span diverse industries including chemicals, beverages, realty, IT software, and automobiles, reflecting a genuinely diversified small-cap approach.
The fund is a strong long-term performer, beating category average SIP XIRR over 5Y (24.23% vs 22.85%) and 7Y (23.81% vs 21.78%), though it trails peers over 1Y and 3Y horizons. Calendar year returns show high variability typical of small caps, ranging from 65.31% in 2021 to -13.02% in 2025. Its consistent positive alpha versus the benchmark across 1Y through 15Y periods suggests durable stock-selection skill rather than short-term luck.
This fund suits investors with a high risk tolerance and a long investment horizon of at least 5-7 years, given small-cap volatility and the fund's demonstrated outperformance over longer periods. SIP investors seeking wealth creation over extended horizons may benefit from the fund's superior 5Y and 7Y XIRR versus category peers. Investors needing short-term liquidity or sensitive to drawdowns like the 2025 calendar year return of -13.02% should be cautious.
- Consistent positive alpha versus the NIFTY SmallCap 250 benchmark across all measured periods from 1Y to 15Y, including 10.86% alpha over 1Y
- Superior long-term SIP returns with 5Y XIRR of 24.23% and 7Y XIRR of 23.81%, both exceeding category averages
- Favorable downside protection with 10Y downside capture of 77.24% versus upside capture of 82.14%, indicating resilience in falling markets
- Short-term SIP performance lags the category, with 1Y XIRR of 16.53% and 3Y XIRR of 18.91% below category averages of 17.6% and 20.13%
- High return volatility typical of small caps, with calendar year returns swinging from 65.31% in 2021 to -13.02% in 2025, and 6 drawdown events exceeding 10%
Generated on 30-10-2026, 2:15 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 | ₹12.74 L | 20.5% | -58.7% | 109.5% |
| 3 Years | ₹36.00 L | ₹50.99 L | 23.2% | -20.4% | 48.1% |
| 5 Years | ₹60.00 L | ₹1.06 Cr | 24.2% | 9.1% | 38.8% |
| 7 Years | ₹84.00 L | ₹1.88 Cr | 23.8% | 16.5% | 29.9% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | NIFTY SMALLCAP 250 | Category avg | Fund edge |
|---|---|---|---|---|
| 1 Year | 20.5% | 21.9% | 17.5% | -1.4% |
| 3 Years | 23.2% | 15.2% | 20.1% | +8.0% |
| 5 Years | 24.2% | 14.3% | 22.8% | +9.9% |
| 7 Years | 23.8% | 14.4% | 21.8% | +9.4% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 18.9% | 10.6% | -35.9% | 108.1% | 0.41 | 1.23 | 70% | — | — |
| 3 Years | 21.7% | 23.3% | -7.2% | 44.6% | 1.39 | 5.45 | 93% | — | — |
| 5 Years | 22.4% | 21.5% | 10.9% | 38.2% | 2.22 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY SMALLCAP 250
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +10.76 | 0.96 | 97.4% | 86.9% | 7.5% | -3.7% |
| 3 Years | +4.62 | 0.96 | 95.7% | 91.2% | 16.1% | 11.7% |
| 5 Years | +3.91 | 0.90 | 90.0% | 85.8% | 15.4% | 12.1% |
| 7 Years | +3.11 | 0.88 | 86.9% | 83.3% | 21.2% | 19.7% |
| 10 Years | +3.88 | 0.83 | 82.2% | 77.2% | 14.0% | 10.8% |
| 12 Years | +2.98 | 0.83 | 82.2% | 77.2% | 11.5% | 9.0% |
| 15 Years | +2.12 | 0.83 | 82.2% | 77.2% | 9.1% | 7.1% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Garware Hi-Tech Films Ltd. | 4.72% |
| 2 | Manorama Industries Ltd. | 3.14% |
| 3 | Avalon Technologies Ltd. | 3.06% |
| 4 | Allied Blenders And Distillers Ltd. | 2.90% |
| 5 | Navin Fluorine International Ltd. | 2.87% |
| 6 | Neuland Laboratories Ltd. | 2.35% |
| 7 | SML Mahindra Ltd. | 2.32% |
| 8 | Kirloskar Oil Engines Ltd. | 2.16% |
| 9 | Brigade Enterprises Ltd. | 2.13% |
| 10 | Lumax Auto Technologies Ltd. | 2.11% |