LIC MF Nifty Next 50 Index Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

LIC MF Nifty Next 50 Index Fund Direct Growth Plan currently has an NAV of ₹59.8968 as of 09 Sep 2026 and an AUM of ₹112 Cr. Its 1-year, 3-year and 5-year returns are 8.94%, 17.04% and 11.9%, and the scheme sits in the High Risk category.

Our view is that this is a diversified index option for investors who can accept sharp swings and want exposure beyond the largest names in the market. The fund has delivered a stronger longer-term pattern than its benchmark, while the recent stretch has been softer, so the case here is more about patience than steady near-term consistency.

Quick facts

Particular	Details
NAV	₹59.8968 as of 09 Sep 2026
AUM	₹112 Cr
Expense Ratio	0.38%
Launch Date	01 Jan 2013
Min SIP	₹200
Risk Category	High Risk
Benchmark	Nifty 50
Fund Category	Index Funds
Exit Load	No exit load after holding period
Fund Managers	Nikhil Kapoor, Sasikant Aravamuthan

The fund is managed by Nikhil Kapoor and Sasikant Aravamuthan.

Source data date: as of 09 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-2.48%	-4.69%
3M	6.06%	0.93%
1Y	8.94%	-7.16%
3Y	17.04%	6%
5Y	11.9%	5.87%

The recent picture is mixed rather than one-way. The fund was under some pressure over the latest month, but the drop was still milder than the benchmark’s move, which suggests relative resilience in a weak patch.

The three-month number is more encouraging, because the fund has moved ahead of the benchmark by a clear margin. That matters for investors who want a vehicle that can keep up when the market broadens beyond the largest index names.

Over 1 year, 3 years and 5 years, the fund has stayed ahead of the benchmark. The gap is especially visible over the 1-year and 3-year periods, where the benchmark has been well behind. The longer-term pattern also looks steadier than the benchmark’s own path, which has been more uneven and has spent periods in negative territory.

For us, the key point is that this is not a smooth compounding story, but it is a credible one. The fund’s longer arc has been better than the benchmark, while the latest month shows that index-linked volatility remains part of the experience.

Source data date: as of 09 Sep 2026

Should you BUY or HOLD LIC MF Nifty Next 50 Index?

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 Nifty Next 50 Index Fund Direct Growth Plan	8.94%	17.04%	11.9%
ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan	33.02%	30.03%	Data not available
Aditya Birla SL Nifty India Defence Index Fund Direct Growth Plan	32.69%	Data not available	Data not available
Motilal Oswal Nifty India Defence Index Fund Direct Growth Plan	31.48%	Data not available	Data not available
Tata Nifty Capital Markets Index Fund Direct Growth Plan	25.59%	Data not available	Data not available
Motilal Oswal Nifty Capital Market Index Fund Direct Growth Plan	24.6%	Data not available	Data not available

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

On 1-year return, the fund trails several of the comparison names by a wide margin, especially the thematic index funds that have posted much stronger recent gains. That said, the comparison changes once the horizon extends to 3 years and 5 years, where this fund’s available figures are materially better than the benchmark and more complete than several peers that do not yet have longer history.

The short-term story is therefore weaker than the longer-term one. For investors judging only the latest year, the fund looks subdued against the more momentum-driven peers; for those looking at a fuller cycle, it presents a more balanced record, with the benchmark comparison supporting the case that its return stream has been more durable than the index it is measured against.

Source data date: as of 09 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Divi'S Laboratories Ltd.	Healthcare	4.83%
TVS Motor Company Ltd.	Automobile & Ancillaries	4.08%
Tata Motors Ltd.	Domestic Equities	3.95%
Hindustan Aeronautics Ltd.	Capital Goods	3.66%
Adani Power Ltd.	Power	3.3%
Cholamandalam Investment & Fin Co Ltd.	Finance	3.22%
Samvardhana Motherson International Ltd.	Automobile & Ancillaries	3.03%
Torrent Pharmaceuticals Ltd.	Healthcare	2.97%
Cummins India Ltd.	Automobile & Ancillaries	2.77%
Bharat Petroleum Corporation Ltd.	Crude Oil	2.63%

The largest holding is Divi'S Laboratories Ltd. at 4.83%, so no single stock dominates the portfolio on its own. The drop from the first holding to the tenth is moderate rather than extreme, which suggests that the fund spreads weight across a cluster of mid-sized positions instead of leaning on one or two outsized bets.

The top 10 holdings together account for approximately 34.44% of the portfolio. That leaves a substantial share spread across the remaining 40 disclosed holdings, so the fund is not narrowly concentrated even though the leading positions still matter for day-to-day movement.

That structure may suit investors who are comfortable with sector and stock rotation but still want the discipline of an index format. It could also mean that performance is likely to reflect changes in a fairly broad set of constituents rather than just a handful of names.

To see all holdings, visit the LIC MF Nifty Next 50 Index Fund Direct Growth Plan page

Source data date: as of 09 Sep 2026

Who should invest

This fund suits investors who can tolerate High Risk and are comfortable with equity-style ups and downs. The return pattern points to a longer holding period, because the 1-year result is much weaker than the 3-year and 5-year record, and the benchmark comparison also shows that short periods can be choppy.

It is a better fit for someone who wants diversified index exposure beyond the largest names and can stay invested through phases when recent numbers look uneven. The main trade-off is simple: the portfolio may offer broader market participation and stronger longer-term compounding than the benchmark, but it can still go through sharp short-term swings and may lag more aggressive thematic peers in a hot market.

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

No exit load after holding period.

Source data date: as of 09 Sep 2026

Frequently asked questions

What is the current NAV of LIC MF Nifty Next 50 Index Fund Direct Growth Plan?

The current NAV is ₹59.8968 as of 09 Sep 2026.

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

The fund’s 1-year, 3-year and 5-year returns are 8.94%, 17.04% and 11.9%.

How has it performed versus the benchmark?

It has stayed ahead of the benchmark across 1 month, 3 months, 1 year, 3 years and 5 years. The gap is most visible over the longer periods.

How does it compare with the peer funds listed here?

Its 1-year return is lower than the listed thematic peers, but its 3-year and 5-year record is more meaningful for a longer-horizon comparison because several peers do not yet have longer history available.

What is the minimum SIP amount?

The minimum SIP amount is ₹200.

Who manages the fund and what is the exit load?

The fund is managed by Nikhil Kapoor and Sasikant Aravamuthan. There is no exit load after the holding period.

Bottom line

LIC MF Nifty Next 50 Index Fund Direct Growth Plan has a weaker recent year than some peer themes, but its 3-year and 5-year figures show a more durable pattern than the benchmark. The portfolio is spread across 50 holdings, with the top 10 contributing 34.44%, so it is not overly dependent on a single stock. The High Risk tag fits the short-term swings, but the longer-term return profile makes it more relevant for patient investors who want broad, index-style exposure.

Published on 10 September 2026 at 9:58 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.