LIC Mutual Fund: Top Schemes, Returns & How to Invest

LIC Mutual Fund is sponsored by Life Insurance Corporation of India and has been operating for 32 years since its incorporation on 20 April 1994. The fund house manages ₹51,562.63 crore across 35 schemes and has maintained an above-average CRISIL rating along with strong investor trust over the years. Its scheme lineup spans equity, debt, index, and liquid fund categories, catering to a wide range of investor goals and risk profiles.

Key takeaways

• LIC Mutual Fund is sponsored by Life Insurance Corporation of India, incorporated on 20 April 1994, with 32 years of operations.
• The AMC manages ₹51,562.63 crore across 35 schemes.
• Top equity-oriented funds include the Infrastructure Fund (3Y CAGR: 22.51%) and Healthcare Fund (3Y CAGR: 21.41%).
• The Gold ETF Fund of Fund delivered 42% returns over one year and 35.55% over three years.
• Liquid and overnight funds offer near-zero volatility, making them suitable for short-term surplus parking.

About LIC Mutual Fund

LIC Mutual Fund was incorporated on 20 April 1994 under the sponsorship of Life Insurance Corporation of India. The fund house is 32 years old and manages ₹51,562.63 crore spread across 35 schemes. The trustee entity is LIC Mutual Fund Trustee Company Pvt. Ltd., and the AMC is headquartered at the Industrial Assurance Building, Ground Floor, Opp. Churchgate Station, Mumbai 400020.

Who Manages the Fund?

The AMC is led by MD Shri Raj Kumar and CEO Ravi Kumar Jha. Marzban Irani serves as Chief Investment Officer (Debt), and Mr. Mayank Arora is the Compliance Officer.

Top 10 LIC Mutual Fund Schemes Ranked by Invo Wealth

The following schemes are ranked by Invo Wealth's internal quality score. The table below shows trailing returns across multiple time periods.

Performance data as of 5 September 2026.

All funds listed are Regular Plan - Growth option. CAGR = compound annual growth rate.

Equity and Sectoral Funds: Performance Highlights

The LIC MF Infrastructure Fund has delivered a 3Y CAGR of 22.51% and a 5Y CAGR of 20.80%. Its volatility stands at 24.02% and max drawdown at -26.92%, reflecting the cyclical nature of infrastructure-linked businesses.

The LIC MF Healthcare Fund has returned 21.41% over three years and a strong 42.57% in the past six months. With volatility at 16.85% and a max drawdown of -15.35%, it carries comparatively lower downside risk than the infrastructure fund.

Multi Cap and Index Funds

The LIC MF Multi Cap Fund has returned 16.58% over three years with a max drawdown of -19.84%, offering diversification across large, mid, and small-cap stocks in a single fund.

For passive investors, the LIC MF Nifty Next 50 Index Fund has delivered 17.12% over three years with volatility of 22.11%. The LIC MF Nifty 50 Index Fund has returned 6.97% over three years and 6.74% over five years.

Gold Fund

The LIC MF Gold ETF Fund of Fund returned 42% over one year and 35.55% over three years. Its volatility is 29.19% and max drawdown is -24.50%, reflecting the price swings typical of gold as an asset class.

Debt, Liquid, and Overnight Funds

For capital preservation, the LIC MF Liquid Fund returned 6.41% over one year with near-zero volatility of 0.20% and a max drawdown of just -0.01%. The LIC MF Overnight Fund delivered 5.22% over one year with a max drawdown of 0.00%. The LIC MF Money Market Fund returned 6.46% over one year, and the LIC MF Medium to Long Term Fund returned 4.55% over one year and 6.48% over three years.

Risk Metrics: Volatility, Drawdown and Sortino Ratio

Knowing how much a fund can fall matters as much as knowing how much it can rise. The table below compares volatility, maximum drawdown, and Sortino ratio across all 10 schemes.

Among equity-oriented options, the Gold ETF FoF has the highest Sortino ratio at 1.42, followed by the Healthcare Fund at 1.22 and the Infrastructure Fund at 0.87 — indicating better risk-adjusted returns relative to downside volatility. Liquid, overnight, and money market funds show negative Sortino ratios because their returns are highly stable and downside deviation is minimal, making the ratio less meaningful for those categories.

How to Start a SIP in LIC Mutual Fund

You can invest in LIC Mutual Fund directly through the fund house's website or through any registered online investment platform. When planning your SIP, factor in your investment amount, the tenure, the number of existing SIPs you are already running, and your expected rate of return.

Most fund houses now offer a Step-up SIP (top-up SIP) facility that lets you increase your contribution periodically — confirm availability with LIC Mutual Fund before activating it. To cancel a SIP, place a cancellation request on the platform where you invested or log in to the fund house's website with your folio number.

Sign up on Invo Wealth for complete portfolio insights and to invest in LIC Mutual Fund schemes that match your risk profile and financial goals.

How to Redeem LIC Mutual Fund Investments

To redeem offline, visit the nearest LIC Mutual Fund branch and submit a redemption form. Online, log in to the official LIC Mutual Fund website with your folio number or place a redemption request on any registered investment portal where you hold units.

Conclusion

LIC Mutual Fund, backed by Life Insurance Corporation of India, manages ₹51,562.63 crore across 35 schemes with 32 years of operational history. Equity options like the Infrastructure and Healthcare funds have delivered strong multi-year CAGRs, the Gold ETF FoF has stood out for both its 1Y and 3Y performance, and liquid or overnight funds offer near-zero-risk parking for short-term money. Review your risk tolerance and investment horizon carefully before selecting a scheme.