Rs 5,000 monthly SIP in this LIC MF scheme for 60 months would have turned into Rs 5,41,494

Investment tips, mutual funds to invest in: Little drops of water make the mighty ocean. 

We have all heard of this quote since our childhood, which emphasises that small and consistent efforts every day lead to big results. This could be applied and related to every aspect of our lives, including investment.

While the craze and temptation for investment instruments that promise maximum returns in a relatively short period are unlikely to fade, there are financial instruments that may not help in making a quick buck but play a vital role in building one's wealth over a long time. 

That said, one investment fund that investors looking for long-term capital growth may consider is the LIC MF Infrastructure Fund. It is an open-ended equity scheme investing in the infrastructure sector.

The scheme was launched on March 24, 2008. 

Return calculator

Data shows that a monthly SIP of Rs 5,000 would have become Rs 70,753 in one year, Rs 2,62,288 in three years, and Rs 5,41,494 in a five-year time frame. Meanwhile, a one-time payment of Rs 20,000 would have become Rs 34,090 in one year, Rs 49,734 in three years and Rs 59,154 in five years. 

Fund Size

AUM, or assets under management as of March 31, 2024, is Rs 225.40 crore.

Investment Objective

The objective of the scheme is to generate long-term growth from a portfolio of equity or equity-related instruments owned by companies engaged either directly or indirectly in the infrastructure sector.

Minimum lump-sum amount

Rs 5,000 and in multiples of Re. 1 thereafter. For a systematic investment plan (SIP), the minimum amount is Rs 300 (daily), Rs 1,000 (monthly), and Rs 3,000 (quarterly). Under all frequencies, the investment shall be in multiples of Re. 1 thereafter.

Fund manager

The scheme is managed by Yogesh Patil. Patil has more than 19 years of experience. Patil, who has an MBA in finance, before joining LIC MF, worked with fund houses like Canara Robeco Mutual Fund, Sahara Mutual Fund, and Religare Enterprises.

Top Holdings

The top 10 holdings of the fund are Bharat Bijlee (4.79 per cent), Schneider Electric Infra (4.22 per cent), Transport Corporation of India (3.61 per cent), Garware Hi-Tech Films (3.40 per cent), REC Ltd (3.31 per cent), Texmaco Rail (3.25 per cent), Swan Energy (3.25 per cent), KSB (3.24 per cent), GE T&D India (3.22 per cent), and Kennametal India (2.94 per cent).

Load Structure

>> 12% of the units allotted shall be redeemed or switched out without any exit load on or before the completion of 90 days from the date of the allotment of units.
 >> 1% on remaining units if redeemed or switched out on or before completion of 90 days from the date of allotment of units.
>> Nil, if redeemed or switched out after completion of 90 days from the date of allotment of units.

NAV

The net asset value as of April 2024 is Rs 44.78. 

Expense ratio

The expense ratio for the Regular plan is 2.46 per cent and for the Direct plan, it is 1.21 per cent.

All mutual fund schemes offer two plans: Direct and Regular. In a Direct Plan, an investor has to invest directly with the AMC, while in a Regular Plan, the investor invests through an intermediary such as a distributor, broker, or banker who is paid a distribution fee by the AMC, which is charged to the plan.

Benchmark index

The first-tier benchmark index of the scheme is the Nifty Infrastructure TRI.

(Source: LIC MF website)

With data from LIC MF.com and Groww.