LIC MF Dividend Yield Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

LIC MF Dividend Yield Fund Direct Growth Plan currently has a NAV of ₹35.2388 as of 15 Sep 2026, with scheme AUM of ₹759 Cr. Its 1-year, 3-year and 5-year returns are 4.5%, 17.78% and 14.72% respectively, and the fund sits in the High Risk category.

Our view is that the fund fits investors who can accept a sharper swing in returns in exchange for a portfolio that has still compounded well over longer periods. Recent performance has been softer than the 3-year and 5-year trail, while the equity-heavy, stock-specific portfolio can make outcomes less smooth than a broad market index.

Quick facts

Particular	Details
NAV	₹35.2388 as of 15 Sep 2026
AUM	₹759 Cr
Expense Ratio	0.72%
Launch Date	21 Dec 2018
Min SIP	₹200
Risk Category	High Risk
Benchmark	Nifty 50
Fund Category	Equity
Exit Load	Nil upto 12% of units and 1% for remaining units on or before 12M, Nil after 12M
Fund Managers	Dikshit Mittal, Sumit Bhatnagar

The fund is managed by Dikshit Mittal and Sumit Bhatnagar.

Source data date: as of 15 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-3.53%	-4.81%
3M	0.72%	-3.63%
1Y	4.5%	-8.27%
3Y	17.78%	5.59%
5Y	14.72%	5.58%

The recent pattern is uneven but not weak across every window. Over 1 month the fund fell less than the benchmark, and over 3 months it posted a small gain while the benchmark stayed negative. That tells us the strategy can behave differently from the broad market even in choppy phases.

The 1-year return is modest at 4.5%, but it still stands well above the benchmark’s -8.27%. That gap matters because it shows the fund protected capital better than the index over the last year, even though the absolute return was not strong.

The longer record is more encouraging. The 3-year return of 17.78% is comfortably ahead of the benchmark’s 5.59%, and the 5-year return of 14.72% also clears the benchmark’s 5.58%. In our view, that points to a fund that has rewarded patient holding periods more than short-term timing.

The time pattern also suggests some volatility in the recent run. The 1-year trail improves and then softens again, so the latest weakness looks more like a pause after a stronger multi-year stretch than a clean continuation of the earlier trend.

Source data date: as of 15 Sep 2026

Should you BUY or HOLD LIC MF Dividend Yield?

A fund's past returns alone don't tell you whether you should buy it today or continue holding it.

The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.

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Peer comparison

Fund	1Y return	3Y return	5Y return
LIC MF Dividend Yield Fund Direct Growth Plan	4.5%	17.78%	14.72%
Tata Dividend Yield Fund Direct Growth Plan	11.82%	14.12%	14.03%
SBI Dividend Yield Fund Direct Growth Plan	3.72%	10.74%	Data not available
Aditya Birla SL Dividend Yield Fund Direct Growth Plan	2.92%	11.72%	13.42%
Baroda BNP Paribas Dividend Yield Fund Direct Growth Plan	1.1%	Data not available	Data not available

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

On the latest 1-year figure, the fund trails Tata Dividend Yield Fund Direct Growth Plan, which is stronger at 11.82%, but it still holds up better than the other peers shown here. That makes the short-term picture mixed rather than decisive.

The longer-term picture is more supportive. The fund’s 3-year return of 17.78% is above the available peer figures, and its 5-year return of 14.72% is also ahead of the comparable results we can see. So the fund’s current softness does not erase a stronger multi-year track record.

That split matters for investors. The peer set suggests the fund has been more compelling on longer holding periods than on the most recent 12 months, which is consistent with a strategy that may go through uneven phases before the longer compounding shows up.

Source data date: as of 15 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Avalon Technologies Ltd.	Electricals	4.58%
HDFC Bank Ltd.	Bank	4.58%
Garware Hi-Tech Films Ltd.	Plastic Products	4.26%
TREPS	Cash & Cash Equivalents and Net Assets	4.04%
ICICI Bank Ltd.	Bank	3.84%
Tata Consultancy Services Ltd.	IT	2.79%
Axis Bank Ltd.	Bank	2.63%
Kotak Mahindra Bank Ltd.	Bank	2.62%
Neuland Laboratories Ltd.	Healthcare	2.34%
Bharat Electronics Ltd.	Capital Goods	2.26%

The largest holding is Avalon Technologies Ltd. at 4.58%, which is a meaningful single-stock position but not an outsized one by itself. The next few holdings are close behind, including HDFC Bank Ltd. at the same weight and Garware Hi-Tech Films Ltd. just below that, so the top end is fairly even rather than dominated by one name.

The drop from the largest holding to the tenth is gradual rather than sharp. That pattern usually suggests a portfolio that is spread across several active positions, even though some names still carry enough weight to matter more than the smaller tail holdings.

The top 10 holdings account for approximately 33.94% of the portfolio, and there are 57 disclosed holdings in total. In our view, that combination points to a portfolio with both a meaningful core and a long tail of smaller positions, so individual holdings may influence returns but not in a purely concentrated way.

To see all holdings, visit the LIC MF Dividend Yield Fund Direct Growth Plan page

Source data date: as of 15 Sep 2026

Who should invest

This fund suits investors who can tolerate High Risk exposure and stay invested long enough for the multi-year pattern to matter. The return profile shows a weaker recent stretch than the 3-year and 5-year record, so short holding periods may not capture the strategy at its best.

Our read is that the fund is more appropriate for investors who are comfortable with equity-style swings and who are looking beyond the benchmark’s short-term behaviour. The trade-off is clear: you may accept a choppier near-term path in exchange for the possibility that the longer compounding pattern can reassert itself over time.

Tax and exit load

Holding period	Tax rate	Description
Units held less than 1 year	20%	Short-term capital gains tax
Units held more than 1 year	12.5%	Long-term capital gains tax

Exit load: Nil up to 12% of units and 1% for remaining units if sold within 12 months; no exit load after 12 months.

Source data date: as of 15 Sep 2026

Frequently asked questions

What is the current NAV of LIC MF Dividend Yield Fund Direct Growth Plan?

The current NAV is ₹35.2388 as of 15 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?

Its 1-year return is 4.5%, the 3-year return is 17.78%, and the 5-year return is 14.72%.

How has it done against the benchmark?

It has beaten the Nifty 50 over 1 year, 3 years and 5 years. The gap is especially clear over the 3-year and 5-year periods.

How does it compare with peer funds on the available return data?

Its 3-year and 5-year returns are ahead of the comparable figures shown for the peer funds in this review, while the 1-year figure is more mixed.

What is the minimum SIP amount?

The minimum SIP amount is ₹200.

What is the fund’s risk profile and exit load structure?

The fund is classified as High Risk. The exit load is nil up to 12% of units and 1% for the remaining units if sold within 12 months, and there is no exit load after 12 months.

Bottom line

LIC MF Dividend Yield Fund Direct Growth Plan shows a softer recent run than its longer-term record, but the 3-year and 5-year numbers still point to a fund that has compounded well over time. Against the benchmark, it has held up better across all the measured windows, and its longer-term returns compare favourably with the peer figures shown here. The portfolio is spread across 57 holdings, with the top 10 contributing a meaningful but not overwhelming share, which may help avoid extreme dependence on a single position.

Published on 16 September 2026 at 9:38 AM IST

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RIA disclosure

Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.