High Risk, but Powerful Returns: This LIC Fund Has Made Investors Rich

High Risk, but Powerful Returns: Consistent strong performance across all market cycles is what differentiates an average mutual fund from a great one. Among LIC Mutual Fund's schemes, the LIC MF Infrastructure Fund Direct Plan Growth has quietly built a strong track record over the long term. Based on 3, 5, and 10-year returns, this infrastructure-focused fund has emerged as LIC's best-performing fund across key time periods. It has delivered good returns to both lump sum and SIP investors.

However, this is a high-risk fund, so a long-term perspective and patience are essential.

Lump Sum Investors Reap Huge Benefits

For investors who invested a lump sum and remained invested despite market fluctuations, this fund has created tremendous wealth.

₹1 lakh invested five years ago has more than tripled today. This clearly shows that patience in the infrastructure theme at the right time can yield significant benefits.

SIP Investors Also Benefited

Investors who invested regularly through SIPs have also benefited significantly from the fund's long-term performance.

The data shows that disciplined investing over the long term mitigates the impact of market volatility and builds substantial wealth.

Fund at a Glance

This fund was launched on January 2, 2013, and has delivered a return of approximately 15.19% since its inception. Its benchmark is the NIFTY Infrastructure TRI, and it is an open-ended scheme. As of December 31, 2025, the fund had Assets Under Management (AUM) of ₹1,003 crore. An expense ratio of 0.83% makes it relatively cost-effective among active sectoral funds.

High Risk, but Balanced Performance

This fund falls under the Very High Risk category, which is common for infrastructure funds. It offers a higher potential for returns, but it can also experience sharp fluctuations in the short term. Nevertheless, its risk metrics are decent. The fund's average return is 27.53%, with a Sharpe Ratio of 1.06 and a Sortino Ratio of 1.45. A beta of 0.67 indicates that the fund has been relatively less affected by major market shocks.

Focus on Infrastructure Theme

The fund's portfolio is primarily concentrated in infrastructure-related sectors. The industrial sector accounts for over 54% of the portfolio. The remaining investments are in materials, energy and utilities, financials, and consumer sectors.

In terms of stocks, the portfolio is well-diversified. It includes companies like Shakti Pumps, Tata Motors, L&T, REC, Apollo Hospitals, Cummins India, and Bharat Bijlee, ensuring that there is no over-reliance on any single stock.

Important for Investors

While the 3, 5, and 10-year returns are impressive, it's crucial to remember that past performance is not a guarantee of future results. Sectoral funds like infrastructure funds are cyclical and can sometimes underperform for extended periods. This fund may be suitable for investors with a long-term perspective and a higher risk appetite.