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LIC MF Banking & Financial Services Fund | NAV, Returns, Performance & Investment Details

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Comprehensive guide to LIC MF Banking & Financial Services Fund. Get latest NAV, returns, fund manager details, expense ratio, SIP options, and investment insights for this sectoral fund.

Investment Objective and Approach

The investment objective of the scheme is to generate long-term capital appreciation for unit holders from a portfolio that is invested substantially in equity and equity related securities of companies engaged in the banking and financial services sector. The scheme maintains a minimum investment of 80% of total assets in equity & equity related instruments of the banking and financial services sector.

Investment Strategy

The fund follows a focused investment approach by:

- Investing predominantly in a portfolio of equity and equity related securities of companies engaged in banking and financial services

- Concentrating investments primarily in sectors such as Banks, Finance, Capital Markets, and Insurance

- Building a portfolio with top holdings including HDFC Bank Ltd., ICICI Bank Ltd., Axis Bank Ltd., State Bank of India, and Power Finance Corporation Ltd.

Investor Suitability

This fund is suitable for:

- Investors seeking capital appreciation with a long-term investment horizon and high-risk appetite who can tolerate higher volatility

- Those looking to add Banking & Financial Services exposure to their existing core portfolio

- Investors with an investment horizon of more than 3 years

Fund Managers

The fund is managed by experienced professionals with proven track records:

Yogesh Patil - Head of Equities

- Currently serves as Head of Equities and has more than 16 years of experience in the Indian Equity Markets (both buy and sell-side)

- Previously worked with Canara Robeco Asset Management Company and Sahara Mutual Fund

- During his tenure at Canara AMC, managed the Canara Robeco Infrastructure Fund, which ranked No. 1 by CRISIL for four quarters

- Holds an MBA degree in Finance from Symbiosis Institute of Business Management

Jaiprakash Toshniwal

- Has extensive experience of 15 years in managing equity & related investments and focuses on picking quality companies, holding them for long duration to generate good compounding returns

- Holds qualifications including CFA from CFA Institute, USA, MS Finance (CFA) from ICFAI, India, and B.com from Gujarat University

- Previously worked with India First Life Insurance and Taurus Mutual Fund before joining LIC Mutual Fund

About the Fund House (AMC)

LIC Mutual Fund Asset Management Limited is a prominent asset management company with a rich heritage:

Company Overview

- LIC launched its mutual fund wing on 20th April 1989, leveraging its reputation as the most trusted name in insurance

- Registered with SEBI in 1994, the fund house has a rich history of almost 30 years in effectively managing investors' funds

- Due to its reputation and size, it quickly became a favourite with investors and is an associate company of the Life Insurance Corporation of India

Shareholding Structure

- LIC of India holds 45% ownership as the principal shareholder, with other stakeholders including LIC Housing Finance (39.30%), GIC Housing Finance (11.70%), and Union Bank of India (4%)

Assets Under Management

- LIC Mutual Fund Asset Management Limited manages AUM of ₹36,958.73 Cr as per recent data

- As of March 2024, LIC Mutual Funds has Assets Under Management of Rs 29,413.77 crores and offers 38 funds

Leadership Team

- Mr Dinesh Pangtey serves as Whole-time Director and Chief Executive Officer

- Mr Mayank Arora is the Chief Compliance, Financial Officer & Company Secretary

- LIC Mutual Fund Trustee Private Ltd. serves as the Trustee Company

Company Strengths

- Maintained an above average CRISIL rating and high investor affiliation for the past 30 years

- The fund house strives to create value for investors by adopting innovative strategies for investment and providing excellent service experience

- LIC is a trusted brand with a long-standing history of 59 years in India's financial sector, bringing trust and reliability to investors

Should I Invest in LIC MF Banking & Financial Services Fund?

This sectoral fund offers targeted exposure to India's banking and financial services sector, which plays a crucial role in the country's economic growth. Here are key considerations:

Strengths

- Sectoral Focus: The fund has a consistency rating indicating average returns delivery but with exceptional consistency, making it suitable for investors seeking predictability of returns

- Experienced Management: Professional fund management with deep expertise in equity markets and sectoral analysis

- Legacy Brand: Backed by LIC's trusted brand name and decades of financial sector experience

Key Considerations

- Sector Concentration Risk: Being a sectoral fund, it concentrates investments in banking and financial services, making it more volatile than diversified funds

- Market Cycles: Banking sector performance is closely linked to economic cycles, interest rate movements, and regulatory changes

- Investment Horizon: Recommended for investors with more than 3-year investment horizon

Performance Highlights

- Recent performance shows 1-year returns of 0.92%, 3-year returns of 31.34%, and 100.98% returns since scheme launch

- The fund carries a Very High risk rating

This fund is suitable for investors who understand sectoral risks and seek focused exposure to India's banking and financial services sector as part of a diversified portfolio.

FAQs

What is today's NAV of LIC MF Banking & Financial Services Fund?

The NAV of LIC MF Banking and Financial Services Fund as of December 11, 2024 is ₹22.6278. NAV changes daily based on market movements.

What is the AUM of LIC MF Banking & Financial Services Fund?

The AUM of LIC MF Banking & Financial Services Fund Regular-Growth is Rs 261.14 Crs as per recent data. AUM fluctuates based on market performance and fund flows.

What is the expense ratio of LIC MF Banking & Financial Services Fund?

The fund has an expense ratio of 2.42%, which is quite reasonable compared to most other equity mutual fund schemes. Direct plans typically have lower expense ratios than regular plans.

What are the returns of LIC MF Banking & Financial Services Fund since inception?

The fund has delivered 100.98% returns since scheme launch. Past performance doesn't guarantee future returns, and mutual fund investments are subject to market risks.

What is the minimum SIP amount to invest in LIC MF Banking & Financial Services Fund?

The minimum SIP amount for LIC MF Banking and Financial Services Fund is ₹200. You can start your SIP journey with this affordable amount.

How do I invest in LIC MF Banking & Financial Services Fund?

You can invest through Allvest's platform by completing KYC formalities, selecting the fund, and making payment through various methods including UPI, net banking, or debit card for a seamless investment experience.

How to start a SIP in LIC MF Banking & Financial Services Fund?

Start your SIP through Allvest by logging in, selecting the fund, choosing SIP option, entering desired amount and date, and setting up payment method. Your investment will reflect in 3-5 working days.

How do I automate an SIP in LIC MF Banking & Financial Services Fund?

Through Allvest, you can set up automated SIPs by enabling auto-debit facility from your bank account. This ensures regular investments without manual intervention on your chosen SIP dates.

How can I withdraw/redeem my investment in LIC MF Banking & Financial Services Fund?

Redeeming investments is easy - log into your investment platform, go to the investment section, and place your redemption request. Proceeds typically reflect in your bank account within 2-4 working days.