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

LIC MF Small Cap Fund Direct Growth Plan has a NAV of ₹40.8074 as of 11 Sep 2026 and a scheme AUM of ₹831 Cr. Its 1-year, 3-year and 5-year returns are 18.62%, 18.5% and 18.79%, respectively, and the fund sits in the High Risk category.

Our view is that this is a small-cap option for investors who can stay patient through volatility. The return pattern is steady over longer periods, but the fund’s recent behaviour still reflects the uneven nature of the small-cap segment and the benchmark it tracks.

Quick facts

Particular	Details
NAV	₹40.8074 as of 11 Sep 2026
AUM	₹831 Cr
Expense Ratio	1.02%
Launch Date	21 Jun 2017
Min SIP	₹200
Risk Category	High Risk
Benchmark	Nifty Small Cap
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, Sudhanshu Asthana

The fund is managed by Dikshit Mittal and Sudhanshu Asthana.

Source data date: as of 11 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	3.13%	0.15%
3M	10.64%	6.06%
1Y	18.62%	4.76%
3Y	18.5%	14.71%
5Y	18.79%	14.39%

Near-term performance is stronger than the benchmark, especially over 1 month, 3 months and 1 year. That tells us the fund has participated well in the small-cap rebound and has done more than just keep pace with the index in the recent stretch.

The longer view is also constructive. The 3-year and 5-year numbers remain above the benchmark, which suggests that the fund has preserved its advantage over a full market cycle rather than relying only on one strong phase. For small-cap investing, that matters because return consistency over time is usually harder to maintain than in broader equity categories.

The time pattern is not smooth, though. The fund has shown noticeable swings along the way, which is expected in this segment and is consistent with its High Risk label. Even with those swings, the overall trend has remained upward, and the recent recovery is stronger than the benchmark’s pace.

For investors reading this over a longer horizon, the main takeaway is simple: the fund has been ahead of the benchmark across every lookback shown here, but it has done so in a category where short bursts and drawdowns can both be sharp.

Source data date: as of 11 Sep 2026

Should you BUY or HOLD LIC MF Small Cap?

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 Small Cap Fund Direct Growth Plan	18.62%	18.5%	18.79%
TRUSTMF Small Cap Fund Direct Growth Plan	34.34%	Data not available	Data not available
Bank of India Small Cap Fund Direct Growth Plan	27.67%	21.4%	20.49%
Motilal Oswal Small Cap Fund Direct Growth Plan	25.19%	Data not available	Data not available
Union Small Cap Fund Direct Growth Plan	24.55%	17.27%	17.91%
ITI Small Cap Fund Direct Growth Plan	23.39%	24.59%	19.48%

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

On the 1-year measure, this fund trails the strongest peer figures in this set, with TRUSTMF Small Cap Fund Direct Growth Plan and Bank of India Small Cap Fund Direct Growth Plan both higher. The picture changes on longer horizons: its 3-year and 5-year returns are above Union Small Cap Fund Direct Growth Plan, though below Bank of India Small Cap Fund Direct Growth Plan and ITI Small Cap Fund Direct Growth Plan where data is available.

That makes the comparison mixed rather than one-sided. The fund’s shorter-term return is solid, but several peers have moved faster over 1 year. At the same time, the fund’s multi-year record remains competitive enough to show persistence, which is often more important than one strong period in a volatile small-cap category.

Source data date: as of 11 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
TREPS	Cash & Cash Equivalents and Net Assets	5.31%
Garware Hi-Tech Films Ltd.	Plastic Products	4.86%
Avalon Technologies Ltd.	Electricals	4.14%
Manorama Industries Ltd.	FMCG	3.24%
Navin Fluorine International Ltd.	Chemicals	3.06%
Allied Blenders and Distillers Ltd.	Alcohol	2.52%
Brigade Enterprises Ltd.	Realty	2.46%
Ather Energy Ltd.	Domestic Equities	2.37%
Pricol Ltd.	Automobile & Ancillaries	2.29%
Oracle Financial Services Software Ltd.	IT	2.24%

The top 10 holdings account for approximately 32.49% of the portfolio.

To see all holdings, visit the LIC MF Small Cap Fund Direct Growth Plan page

The largest disclosed position is TREPS at 5.31%, and the next few holdings remain in the mid-single-digit range. The weight then steps down gradually, with the tenth holding at 2.24%, so the portfolio does not look overly dependent on one or two positions from the disclosed list.

At the same time, the top 10 combined weight of 32.49% suggests that a meaningful share of the fund sits in a relatively small set of holdings, while 56 holdings are disclosed in total. Our reading is that this creates a balance between concentration in key ideas and a longer tail of smaller positions that may contribute to diversification.

Because the largest holding is cash and cash equivalents rather than a single equity name, the disclosed allocation may also provide some short-term flexibility. That said, the fund still remains a small-cap equity portfolio overall, so individual stock movements can matter more than in a broad diversified fund.

Source data date: as of 11 Sep 2026

Who should invest

This fund fits investors who can tolerate High Risk and are comfortable with sharp swings along the way. The return pattern shows that it has held up well over 1, 3 and 5 years, but the path has not been linear, which is typical for small-cap investing.

A longer horizon matters here because the fund’s strength is visible across multi-year periods rather than in a straight monthly climb. Investors who want to compare it with the benchmark and peers will see that it has stayed competitive, but they also need to accept that short-term movement can be wide.

The main trade-off is simple: stronger upside potential than a steadier equity fund, but with more volatility and more patience required to stay invested through weaker phases.

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 upto 12% of units and 1% for remaining units on or before 12M; no exit load after holding period.

Source data date: as of 11 Sep 2026

Frequently asked questions

What is the current NAV of LIC MF Small Cap Fund Direct Growth Plan?

The current NAV is ₹40.8074 as of 11 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 18.62%, 18.5% and 18.79%, respectively.

How does the fund compare with its benchmark?

It has outpaced the Nifty Small Cap benchmark across 1 month, 3 months, 1 year, 3 years and 5 years. The gap is widest over the 1-year period.

How does it compare with peer funds on recent returns?

Its 1-year return is lower than several peers in the comparison set, while its 3-year and 5-year numbers remain competitive against the peers with available longer-term data.

Is there a minimum SIP amount?

Yes. The minimum SIP amount is ₹200.

Who manages the fund and what is the exit load?

The fund is managed by Dikshit Mittal and Sudhanshu Asthana. The exit load is nil up to 12% of units and 1% for the remaining units if sold on or before 12 months, and there is no exit load after the holding period.

Bottom line

LIC MF Small Cap Fund Direct Growth Plan has shown a stronger multi-year return pattern than its benchmark, and its recent numbers also remain ahead of the index. Against peers, the short-term return looks less striking, but the 3-year and 5-year figures stay competitive where longer-term data is available. The High Risk profile and the small-cap allocation make this a fund that can move sharply, while the 32.49% top-10 weight suggests a meaningful but not extreme concentration in the disclosed holdings. It suits investors who can stay invested through volatility and are looking for small-cap exposure with an established return record.

Published on 15 September 2026 at 3:21 PM 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.