LIC MF Multicap Fund: One of the most consistent multicap funds

Indian equities have turned volatile again from the turn of the year. Global headwinds like uncertainty about tariffs, geo-political tensions, escalating global trade conflicts, depreciating INR and continuing FII sell offs (Rs 31,300 crores on month to date basis, up to 22^nd January 2026, source: NSDL) are causing volatility in the market. Valuations have moderated from their peaks across all market cap segments (see the charts below). In current market conditions, a strategy which 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 LIC Multicap Fund, which has completed 3 years since launch.

Source: National Stock Exchange, as on 31^st December 2025

Outperformed the benchmark index

The chart below shows the growth of Rs 10,000 investment in the LIC MF Multicap Fund versus the benchmark index since the inception of the fund. You can see that fund outperformed the benchmark.

Source: Advisorkhoj Research, as on 20^th January 2026

Outperformed the benchmark across different market conditions

The chart below shows the 1 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 fairly high degree of consistency, across different market conditions.

Source: Advisorkhoj Research, as on 20^th January 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 20^th January 2026

Limited downside risks

The chart below shows the drawdowns of LIC MF Multicap Fund versus its benchmark index since the inception of the scheme. You can see that the fund was able to limit downside risks for investors most of the time, relative to the benchmark index.

Source: Advisorkhoj Research, as on 20^th January 2026

Outperformed the peer average across different market conditions

The chart below shows the 1 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 fairly high degree of consistency, across different market conditions.

Source: Advisorkhoj Research, as on 20^th January 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 higher percentage instances of 12%+ CAGR returns across 1 and 2 year investment tenures compared to the peer average.

Source: Advisorkhoj Research, as on 20^th January 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 12 quarters. You can see that the fund was in top 2 quartiles, 7 times in the last 12 quarters.

Source: Advisorkhoj Research, as on 20^th January 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. The fund is holding around 4% of its assets in cash equivalents, which can deployed to attractive investment opportunities as market corrects.

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

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