LIC Mutual Fund has recently re-introduced four of their flagship schemes - LIC MF Focused Fund, LIC MF Value Fund, LIC MF Small Cap Fund, LIC MF Dividend Yield Fund. These four schemes along with recently launched, LIC MF Multi Asset Allocation Fund, are funds in focus in current market dynamics. We covered LIC MF Focused Fund, in the previous article of this series. In this article, we will review LIC MF Value Fund, which may be a suitable investment option for long term investors in current market conditions.
Fund managers who follow the value investing style try to identify stocks which are trading at significant discounts to their intrinsic value. The intrinsic value of a stock is based on fundamental analysis based on several factors like the company's competitive strengths, market share, industry growth potential, company's revenue growth prospects, margins, leverage etc. During usual course, a stock may trade at a price higher or lower than the intrinsic value. Stocks which are trading at significant discounts to intrinsic value provide margin of safety because the downside risk is somewhat limited.
Source: National Stock Exchange, Advisorkhoj, as on 25th June 2025 Returns shown are absolute returns
Source: National Stock Exchange, Advisorkhoj, as on 25th June 2025. Returns are CAGR
LIC MF Value Fund was launched in August 2018. The name of the scheme was changed after IDBI Mutual Fund merged with LIC Mutual Fund last year. Nikhil Rungta and Mahesh Bendre are managing this scheme from 1st July 2024. The fund managers attempt to identify fundamentally strong companies, ones with robust balance sheets, steady cash flows, and sound business models, that are currently trading below their intrinsic value due to short-term volatility, contrarian sentiment, or cyclical dislocation.
The chart below shows the 1 year rolling return of LIC MF Value Fund versus its benchmark index over the last 3 years. The average and median rolling returns of LIC MF Value Fund are higher than the benchmark index. The percentage instances (observations) of 15%+ returns of the fund are also higher than that of the benchmark index.
Source: Advisorkhoj Rolling Returns, as on 25th June 2025
Source: LIC MF Value Fund as on 31st May 2025
The chart below shows the growth of Rs 10,000 monthly SIP in LIC MF Value Fund since the inception of the scheme. With a cumulative investment of Rs 8.2 lakhs, you could have accumulated a corpus of Rs 14.24 lakhs (as on 25th June 2025). The SIP returns (XIRR) since inception is 15.94%.
Source: Advisorkhoj Research, as on 25th June 2025
Investors should consult their financial advisors or mutual fund distributors if LIC MF Value Fund is suitable for their investment needs.
Source: LIC MF Fund Factsheet (as on 31st May 2025)
Mutual Fund Investments are subject to market risk, read all scheme related documents carefully.
LIC Mutual Fund was established on 20th April 1989 by LIC of India. Being an associate company of India's premier and most trusted brand, LIC Mutual Fund is one of the well known players in the asset management sphere. With a systematic investment discipline coupled with a high standard of financial ethics and corporate governance, LIC Mutual Fund is emerging as a preferred Investment Manager amongst the investor fraternity.