LIC MF Large & Mid Cap Fund: Strong performance recovery

Current market context

The equity market has been volatile for the past few months due to heavy FII selling, triggered by strong US Dollar (INR Depreciation), concerns about valuations and corporate earnings outlook. Volatility has intensified in the last few weeks due to concerns about the trade policies of the Trump Administration. The 2025 Union Budget has focused on boosting consumption through direct tax cuts, increasing disposable income in hands of investors. The RBI also has taken measures to boost liquidity and growth by cutting repo rate by 25 bps in the last MPC meeting.

Why invest in Large & Mid Cap Funds now?

The correction over the past few months has brought the valuations to a reasonable level, especially in the large and midcap segments of the equity market (see the charts below). In these market conditions a large and midcap oriented strategy may be more suitable for long term investors.

Source: National Stock Exchange, Advisorkhoj Research; Period: 02.09.2024 to 20.01.2025

LIC MF Large & Mid Cap Fund – Balanced market cap mix with higher allocations to small caps relative to peers

The scheme (in blue) is currently reasonably well balanced between market caps. The small cap allocation of the fund is among the highest in the category – alpha creation potential in the long term.

Source: Advisorkhoj Research, as on 31^st January 2025

Upturn in performance in last 1 year

The chart below shows the 1 year rolling returns of LIC MF Large & Mid Cap Fund versus the benchmark index Nifty Large Midcap 250 TRI. You can see that the fund has been outperforming the benchmark over the past 6 – 7 months.

The fund also has been outperforming the category average for last 6 – 7 months (see the chart below).

Source: Advisorkhoj Research, as on 31^st January 2025

Top quartile performer

LIC MF Large & Mid Cap Fund has consistently been in the upper quartiles in the last 1 year or so. In the quarter ended December 2024, the fund was in the top quartile.

Source: Advisorkhoj Research, as on 31^st December 2025

Superior risk adjusted returns

Up-Market Capture Ratio and Down-Market Capture ratio can give us a sense of risk adjusted returns. We looked at the market capture ratios of LIC MF Large & Mid Cap Fund over the last 1 year. For the benefit of new investors and mutual fund distributors who may not be familiar with the concept of market capture ratios, Up Market Capture Ratio tells us how much percentage of the market’s upside was captured by the fund, while Down Market Capture Ratio tells us how much percentage of the market’s downside was arrested by the fund.

The Up Market Capture Ratio of LIC MF Large & Mid Cap Fund over last 3 years was 123% which implies that if the benchmark index went up by 1% in a month, then the fund’s Net Asset Value (NAV) went up by 1.23%; in other words, the fund was able to beat the market in up-cycles. The Down-Market Capture Ratio of the fund was only 98% which implies that if the benchmark index went down by 1% in a month, then the fund’s NAV went down by only 0.98%; in other words, the fund was able to limit the downside risk of investors in falling markets. An up-market capture ratio, which is higher than the down-market capture ratios e.g. market capture ratios of LIC MF Large & Mid Cap Fund is clear indication of the potential of the fund to give superior risk adjusted returns of the fund.

Wealth creation through SIP

The chart below shows the growth of Rs 10,000 monthly SIP in LIC MF Large & Mid Cap Fund versus since the inception of the fund. With a cumulative investment of Rs 12 lakhs, you could have accumulated a corpus of Rs 27 lakhs in the 10 years. The SIP returns of LIC MF Large & Mid Cap Fund is testimony of the wealth creation potential of this fund.

Source: Advisorkhoj Research, as on 10^th February 2025

Regular cash-flows through SWP

The chart below shows the cumulative withdrawals and current value of Rs 30,000 monthly SWP from Rs 50 lakhs invested in LIC MF Large and Mid-Cap Fund at the inception of the scheme. Let us assume you began your withdrawals 1 year after your investment to avoid exit load and short-term capital gains taxation. Despite withdrawing more than Rs 32 lakhs over the last 9 years or so, your investment would have multiplied more than two times to Rs 1.1 crores (as on 31^st January 2025). Your XIRR returns over this period would have been 13.3%. For moderate rates of withdrawal LIC MF Large and Mid-Cap Fund has the potential of generating long term cash-flows for investors along with potential capital growth.

Source: Advisorkhoj Research, as on 31^st January 2025

Current Portfolio Positioning

Source: LIC MF, as on 31^st January 2025

Low overlap with other LIC MF diversified equity funds

LIC MF Large & Mid Cap Fund has low overlap with other LIC MF diversified equity funds (see the table below). You can also see that other diversified equity schemes have low overlap with each other. You can build your core equity portfolio with Large & Mid Cap Fund and other diversified funds from LIC MF as per your risk appetite.

Source: LIC MF, Advisorkhoj Research, as on 31^st January 2025

Who should invest in LIC MF Large & Mid Cap Fund?

• The fund is suitable for the investors who are looking for capital appreciation with a long-term investment horizon.


• Those who have moderately high-risk appetite and may want to invest in both large-cap and mid-cap stocks.


• Those who would like to invest in stocks of large cap & midcap category.


• You can invest either in lump sum or SIP depending on your financial situation and investment needs.


• If you are worried about volatility, you can also invest in the scheme through 3 to 6 months Systematic Transfer Plan (STP) from LIC MF Liquid Fund.


• Those who have an investment horizon of more than 3 years.

Investors should consult with their financial advisors or mutual fund distributors if LIC MF Large & Mid Cap Fund is suitable for their investment needs.