LIC MF Short Duration Fund (M-IDCW) is designed for investors seeking stable returns with a moderate risk profile. This fund primarily invests in short-term debt instruments, making it ideal for those looking to park their money for a short to medium duration while earning attractive yields. With a focus on capital preservation and liquidity, it suits both conservative investors and those transitioning from traditional savings to mutual funds. The fund's professional management ensures optimal asset allocation, enhancing the potential for consistent income.

Ideal for short to medium-term investment
Focuses on capital preservation and liquidity
Invests in high-quality short-term debt instruments
Managed by experienced professionals
Attractive yields compared to traditional savings
Suitable for conservative and new investors

Investment Thesis

LIC MF Short Duration Fund stands out due to its strong backing from the LIC promoter group, ensuring credibility and stability. The fund is well-positioned to leverage the growing digital services landscape, enhancing its operational efficiency. Additionally, its attractive valuation compared to peers makes it a compelling investment opportunity for retail investors seeking steady returns.

Strong promoter group: Backed by LIC, a trusted name in the financial sector.
Digital services growth: Positioned to benefit from the increasing adoption of digital platforms.
Attractive valuation: Offers competitive pricing compared to similar funds in the market.
Steady returns potential: Focus on short-duration bonds provides stability in volatile markets.
Robust management: Experienced fund managers with a proven track record.

Opportunity vs Risk

Opportunities

Stable returns in short duration
Potential for capital appreciation
Low interest rate environment
Diversification in portfolio

Risks ⚠️

Interest rate fluctuations
Credit risk from bond issuers
Market volatility impacts
Liquidity concerns in downturns

Peer Perspective

LIC MF Short Duration Fund is currently trading at a slight premium compared to peers like HDFC Short Term Debt Fund and ICICI Prudential Short Term Fund. A rerating may occur with improved margin stability and consistent yield performance.

📊 Stock Investment Checklist (100 Points)

LIC MF Short Duration Fund(M-IDCW) • Updated: 2025-10-01 06:34:55

10

Business
High

The sector is stable but lacks significant growth potential.
10

Growth
High

Revenue growth has been inconsistent, with fluctuations in profit margins.
10

Profitability
High

ROE and ROCE are moderate, cash flow is stable but not exceptional.
10

Valuation
High

Valuation metrics are in line with peers, but not compelling.
8

Balance
High

Debt levels are manageable, but liquidity could be improved.
7

Governance
High

Promoter holding is decent, but there are concerns about disclosures.
6

Drivers
Good

Limited growth drivers identified, execution risks remain.
5

Technicals
Good

Market sentiment is neutral, with low liquidity.

Final Score & Verdict

Score 73 / 100 • Decent

The LIC MF Short Duration Fund shows moderate potential but faces challenges in growth and profitability. It is suitable for conservative investors seeking stability.