LIC Mutual Fund in 2026: strong debt, costly equity

A mid-sized house, growing faster than the industry

LIC Mutual Fund managed an average of ₹50,035 crore in July–September 2026, excluding domestic fund-of-funds: 0.57% of the industry's ₹87,21,848 crore and 23rd of 55 houses on AMFI's quarterly figures. Its fund house page carries the same number.

Assets grew 20.6% in a year, against 13.1% for the industry, and 1.0% in the last quarter. From the 2022 low the house has multiplied its assets 2.8 times, yet its rank has not moved from 23rd, because the field grew as fast. In 2016 it held 1.02% of the industry and ranked 17th; the share has almost halved. Our rank-change table shows where other houses stand.

The Liquid fund is a third of the house

LIC has 36 schemes in Direct Growth: 16 equity, 9 debt, 6 hybrid, 3 index, 1 fund-of-funds and 1 solution-oriented. By average assets in July–September 2026:

The Liquid fund alone is 32% of the house. The two largest equity schemes, Large & Mid Cap and Multi Cap, hold ₹5,297 crore between them.

Where the equity funds rank

Direct Growth returns to 16 October 2026; rank is among Direct Growth funds in the same category with that much history.

The Value fund was first of 22 over one year at 16.58%, and three funds are in the top three over three. The infrastructure fund, a thematic one, has the best five-year return among 102 sectoral and thematic funds, 20.17% a year, and 21.08% over three. At the other end, the Large Cap fund is 27th of 30 over three years and 26th of 27 over five, and the ELSS fund is 36th of 41 over five. Several of the best-ranked funds are only a few years old, so their five-year cells are empty. Our value fund comparison and multi cap comparison put these two beside rivals.

Fees: above the median nearly everywhere

Eight of the ten charge more than the middle fund in their category, by as much as 1.26 points. The two below the median, Multi Cap and Dividend Yield, are first and third in their categories over three years. The debt side is the reverse: the Medium to Long Term fund charges 0.22% against a 0.69% median and ranks first of 12 over three years at 7.40%, and the Banking & PSU fund, third of 19 at 7.20%, charges 0.28% against 0.35%. Our banking and PSU debt comparison looks at that category.

What the numbers do not tell you

Ranks are small in some categories. Dividend yield has nine funds with a three-year record, so first of nine is a narrow win.

A high fee drags every year. The costly equity funds do not all trail; the Value fund leads despite a 1.78% fee. But a fee above the median has to be earned back before the investor sees a gain.

Liquid money is not equity money. A third of the house sits in one liquid fund, so the headline AUM says little about the equity range.

None of this is a recommendation to buy or sell any fund.