The LIC Nifty 50 ETF is an Exchange-Traded Fund (ETF) offered by the Life Insurance Corporation of India (LIC). It aims to replicate the performance of the Nifty 50 Index, one of the benchmark indices of the National Stock Exchange (NSE) of India.
Key Features of LIC Nifty 50 ETF:
- Underlying Index: Nifty 50 Index.
- Objective: Provide returns that closely correspond to the total returns of the Nifty 50 Index, subject to tracking errors.
- Liquidity: ETFs are traded on stock exchanges, offering liquidity and ease of buying and selling units throughout the trading day.
- Diversification: By investing in an ETF linked to the Nifty 50, investors gain exposure to 50 prominent companies across multiple sectors.
- Transparency: Holdings of ETFs are closely aligned with the underlying index and are usually disclosed regularly.
How to Invest:
- Through Stock Exchange: Investors can buy and sell LIC Nifty 50 ETF units on the stock exchanges (NSE or BSE) through a trading account.
- Direct Investment with AMC: For larger quantities, direct purchase or redemption with the Asset Management Company (AMC) may be possible, subject to minimum thresholds.
Lic nifty 50 ETF Review
The LIC MF Nifty 50 ETF is an exchange-traded fund managed by LIC Mutual Fund, designed to mirror the performance of the Nifty 50 Index, which represents the top 50 companies listed on the NSE of India.
Performance Overview (as of December 31, 2024):
- Net Asset Value (NAV): ₹260.18
- Expense Ratio: 0.06%
- Assets Under Management (AUM): ₹832.10 crore
- 1-Year Return: 9.85%
- 3-Year Annualized Return: 12.02%
- 5-Year Annualized Return: 15.35%
These returns are in line with the Nifty 50 Total Return Index, the fund’s benchmark.
Lic nifty 50 etf Holdings
Here are the top holdings of the LIC Nifty 50 ETF, as it mirrors the Nifty 50 Index:
| Company | Sector | Allocation (%) |
| HDFC Bank | Financial Services | 11.34% |
| Reliance Industries | Energy | 8.64% |
| ICICI Bank | Financial Services | 7.72% |
| Infosys | IT/Technology | 5.83% |
| ITC | Consumer Goods | 4.15% |
| TCS | IT/Technology | 4.02% |
| Larsen & Toubro | Capital Goods | 3.68% |
| Kotak Mahindra Bank | Financial Services | 3.50% |
| Axis Bank | Financial Services | 3.15% |
| Hindustan Unilever | Consumer Goods | 3.10% |
Sector Allocation
| Sector | Allocation (%) |
| Financial Services | 33.27% |
| IT/Technology | 14.62% |
| Energy | 12.58% |
| Consumer Goods | 11.85% |
| Capital Goods | 5.32% |
Key Points:
- The fund maintains the same weightings as the Nifty 50 Index, ensuring accurate replication.
- The financial sector typically has the largest allocation, given its dominance in the index.
Lic nifty 50 etf Returns
Here’s a summary of the returns of the LIC Nifty 50 ETF over different time periods:
| Time Period | Annualized Returns (%) |
| 1 Year | 9.85% |
| 3 Years | 12.02% |
| 5 Years | 15.35% |
| Since Inception | Varies by inception date |
Notes:
- Returns Explanation: The ETF’s returns closely track the performance of the Nifty 50 Total Return Index, which includes both price appreciation and dividend income.
- Tracking Error: There might be a minor difference between the ETF’s returns and the benchmark index due to tracking error.
- Market Conditions: These returns are influenced by the performance of the Indian equity market.
LIC Nifty 50 ETF Growth
The LIC Nifty 50 ETF Growth plan is designed to replicate the performance of the Nifty 50 Index, providing returns in line with its benchmark. Below are the key details and features of this ETF:
The LIC Nifty 50 ETF Growth plan is designed to replicate the performance of the Nifty 50 Index, providing returns in line with its benchmark. Below are the key details and features of this ETF:
Fund Details
| Feature | Details |
| Fund Name | LIC MF Nifty 50 ETF Growth |
| Benchmark Index | Nifty 50 Total Return Index |
| Expense Ratio | ~0.06% (low-cost structure) |
| Fund Category | Equity – Large Cap |
| Assets Under Management | Approx. ₹832.10 crore |
| Investment Objective | Long-term capital growth by mirroring the Nifty 50 Index. |
Growth Option
- The Growth Plan in ETFs reinvests the dividends earned from the underlying stocks, which enhances the fund’s NAV (Net Asset Value) over time.
- Ideal for investors who are looking to accumulate wealth in the long term without relying on regular income from dividends.
Is LIC Nifty 50 ETF Suitable for You?
Best For:
- Long-term investors seeking exposure to the Indian equity market with low costs.
- Passive investors looking for a diversified large-cap portfolio.
Avoid If:
- You’re seeking high active management or have a very short-term investment horizon.
- You’re risk-averse and cannot tolerate market fluctuations.
Strengths of LIC Nifty 50 ETF:
(1) Diversification:
- The ETF mirrors the Nifty 50 Index, providing exposure to 50 of India’s largest and most well-established companies across various sectors.
(2) Low Cost:
- With a low expense ratio (~0.06%), it is cost-effective compared to actively managed mutual funds.
(3) Transparency:
- The portfolio composition is aligned with the Nifty 50 Index, ensuring high transparency for investors.
(4) Market Representation:
- It offers a simple way to gain exposure to the overall Indian equity market, reflecting its economic growth.
(5) Liquidity:
- As an ETF, it is traded on stock exchanges, allowing investors to buy and sell units during market hours.
(6) Ease of Access:
- Suitable for both retail and institutional investors, offering flexibility in terms of investment amount and trade timing.
Risks of LIC Nifty 50 ETF:
(1) Market Risk:
- The ETF is subject to market volatility, as it tracks the Nifty 50 Index. Any downturn in the equity market or economic slowdown can negatively affect returns.
(2) Tracking Error:
- While the ETF aims to replicate the index, slight deviations in performance may occur due to tracking error, including transaction costs and cash holdings.
(3) Sector Concentration:
- A significant portion of the portfolio is concentrated in the financial services and IT sectors. Adverse developments in these sectors could disproportionately impact returns.
(4) Lack of Active Management:
- Unlike actively managed funds, the ETF doesn’t have a fund manager making strategic decisions to outperform the market.
(5) Liquidity Concerns:
- While generally liquid, trading volumes can vary, potentially affecting small investors during times of low demand or high volatility.
(6) Dividend Reinvestment Risk:
- As a growth option, dividends from underlying stocks are reinvested, which might not appeal to investors seeking regular income.
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