Consistency across market cycles is what separates an average mutual fund from a truly standout performer. Among LIC Mutual Fund schemes, one fund that has quietly built a strong long-term track record is the LIC MF Infrastructure Fund – Direct Plan – Growth.
Based on its performance over 3 years, 5 years and 10 years, this infrastructure-focused scheme has emerged as the best performing LIC fund across key timeframes, delivering solid gains for both lump-sum and SIP investors.
Lump-sum investors saw strong wealth creation
The fund has delivered impressive returns for investors who made one-time investments and stayed invested through market ups and downs.
| Investment Period | CAGR (%) | Value of ₹1 lakh |
| 3 Years | 28.26% | ₹2.10 lakh |
| 5 Years | 27.06% | ₹3.31 lakh |
| 10 Years | 17.85% | ₹5.17 lakh |
A ₹1 lakh investment made five years ago has more than tripled, underlining how infrastructure-led themes can reward patience during favourable cycles.
SIP investors were not left behind
Regular investors investing through SIPs have also benefited meaningfully from the fund’s long-term performance.
| Investment Period | CAGR (%) | SIP Value (₹10,000/month) |
|---|---|---|
| 3 Years | 17.17% | ₹4.64 lakh |
| 5 Years | 22.03% | ₹10.36 lakh |
| 10 Years | 19.86% | ₹34 lakh |
(Data source: AMFI, Value Research)
The numbers show that disciplined investing over longer periods has helped smooth out volatility and build sizeable wealth.
Fund snapshot
Launched on 02 January 2013, the fund has delivered a 15.19% return since inception. It is benchmarked against the NIFTY Infrastructure TRI and follows an open-ended structure.
As of 31 December 2025, the fund manages ₹1,003 crore in assets, with an expense ratio of 0.83%, making it relatively cost-efficient for an actively managed sectoral scheme.
High-risk fund with strong risk-adjusted performance
The fund is classified under the Very High Risk category, which is typical for infrastructure-focused funds. While return potential is high, investors should be prepared for sharp short-term fluctuations.
Despite this, key risk metrics remain supportive. The fund has posted a mean return of 27.53%, with a Sharpe ratio of 1.06 and a Sortino ratio of 1.45, indicating reasonable risk-adjusted performance. A beta of 0.67 suggests the fund has been less sensitive to broader market swings compared to its benchmark.
Portfolio tilted towards infrastructure themes
The portfolio is heavily skewed towards infrastructure-linked sectors, with industrials accounting for over 54% of the exposure. Materials, energy & utilities, financials, and consumer-linked sectors make up the rest.
On the stock side, the fund remains diversified, with holdings spread across names such as Shakti Pumps, Tata Motors, Larsen & Toubro, REC, Apollo Hospitals, Cummins India and Bharat Bijlee, ensuring no single stock dominates the portfolio.
What investors should keep in mind
While the fund’s returns across 3, 5 and 10 years are impressive, investors must remember that past performance does not guarantee similar returns in the future. Sectoral funds like infrastructure tend to be cyclical and can go through phases of sharp underperformance.
This scheme may suit investors with a long-term horizon and high risk appetite, but it is best used as part of a diversified portfolio, rather than as a standalone investment.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.