LIC MF Multicap Fund: Consistent outperformance in the Multicap category

In September 2026, the Indian equity market experienced volatility with Nifty sliding below the 24,000 level, as the US and Iran launched strikes and counter strikes on each other’s military facilities. Global headwinds like uncertainty about the Strait of Hormuz strife, escalating global trade conflicts, and the depreciating INR were the main reasons for increasing market volatility. Valuations have moderated from their peaks across all market cap segments (see the charts below). In current market conditions, a strategy that does not bet on one single market capitalisation like a Multicap strategy, may be suitable for long-term investors. In this article, we will review the LIC Multicap Fund.

Source: NSE. Advisorkhoj Research. As on 31^st July 2026. PE ratios are based Trailing Twelve Months (TTM) Earnings Per Share (EPS).

Outperformed the benchmark across different market conditions

The chart below shows the 3- year rolling returns of LIC MF Multicap Fund versus the benchmark index since the inception of the scheme. You can see that the fund was able to outperform the benchmark with consistency across different market conditions.

Source: Advisorkhoj Research, as on 16^th September 2026

The charts below shows the rolling returns distribution of the fund and the benchmark over 1 and 2 year investment tenures. You can see that fund delivered higher percentage instances of 12%+ CAGR returns across 1 and 2 year investment tenures compared to the benchmark index.

Source: Advisorkhoj Research, as on 15^th September 2026

Limited downside risks

The chart below shows the drawdowns of LIC MF Multicap Fund versus its benchmark index in the last 6 months of this year (data from 1^st April 2026 to 15^th September 2026) when the markets showed maximum volatility. You can see that the fund limited downside risk for investors most of the time, relative to the benchmark index. The maximum drawdown of the scheme was -4% during this period Vs the benchmark drawdown of -5%.

Source: Advisorkhoj Research, as on 15^th September 2026

Outperformed the peer average across different market conditions

The chart below shows the 3- year rolling returns of LIC MF Multicap Fund versus the category average since the inception of the scheme. You can see that the fund was able to outperform the category with a wide margin, across different market conditions.

Source: Advisorkhoj Research, as on 15^th September 2026

The charts below shows the rolling returns distribution of the fund and the category (Multicap funds) average over 1 and 2 year investment tenures. You can see that fund delivered a higher percentage of instances of 12%+ CAGR returns across 1- and 2-1dyear investment tenures compared to the peer average.

Source: Advisorkhoj Research, as of 15^th September 2026

Consistently in the top 2 quartiles most of the time

The graphic below shows the quarterly returns of the fund versus the category average for the last 9 quarters. You can see that the fund was in top 2 quartiles, 6 times in the last 9 quarters.

Source: Advisorkhoj Research, as of 15^th September 2026

Current portfolio positioning

LIC MF Multicap Fund has higher allocations to large cap stocks compared to category average. In current volatile market conditions, it is judicious to have higher exposure to large cap stocks.

Source: LIC MF scheme portfolios, Advisorkhoj Research, as on 31^st August 2026

Who can find LIC MF Multicap Fund suitable?

• Investors seeking capital appreciation over long investment horizon


• Investors who want exposure across all market cap segments in a single fund


• Investors with minimum 5 year investment horizon


• Investors with very high risk appetite


• Investors who want to invest across market cap segments through SIP

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