LIC MF Ultra Short Duration Fund(DD-IDCW)

Ticker: mf16881
Decent 66/100

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Business Overview

LIC MF Ultra Short Duration Fund (DD-IDCW) is designed for conservative investors seeking stable returns with lower interest rate risk. This fund primarily invests in debt and money market instruments with a maturity of up to 3 years, making it ideal for those looking to park their money for short to medium-term goals. It offers a balanced approach to wealth creation while maintaining liquidity.

  • Ideal for conservative investors
  • Focuses on short to medium-term returns
  • Invests in debt and money market instruments
  • Lower interest rate risk compared to long-term funds
  • Provides liquidity and stability in volatile markets

Investment Thesis

LIC MF Ultra Short Duration Fund presents a compelling investment opportunity due to its strong backing from the LIC promoter group, a trusted name in the financial sector. The fund is well-positioned to capitalize on the growing digital services landscape, offering attractive valuations compared to its peers, making it a prudent choice for retail investors.

  • Strong credibility backed by the reputable LIC promoter group.
  • Significant growth potential in digital services enhancing fund accessibility.
  • Attractive valuation metrics compared to competing funds in the market.
  • Focus on ultra-short duration assets provides stability and liquidity.
  • Ideal for investors seeking low-risk, short-term investment options.

Opportunity vs Risk

Opportunities
  • Stable returns in low-interest environment
  • Potential for capital appreciation
  • Diversification in fixed income portfolio
  • Tax efficiency for long-term investors
Risks ⚠️
  • Interest rate fluctuations
  • Credit risk in underlying assets
  • Liquidity concerns during market stress
  • Regulatory changes affecting mutual funds
📊 Stock Investment Checklist (100 Points)
LIC MF Ultra Short Duration Fund(DD-IDCW) • Updated: 2025-10-01 03:51:13
  • 10
    Business
    High
    The fund operates in a stable sector but lacks a significant competitive edge.
  • 10
    Growth
    High
    Consistent revenue growth, but profit margins are under pressure.
  • 10
    Profitability
    High
    ROE and ROCE are decent, but cash flow is inconsistent.
  • 8
    Valuation
    High
    Valuation metrics are in line with peers, but not compelling.
  • 7
    Balance
    High
    Moderate debt levels, but liquidity is a concern.
  • 6
    Governance
    Good
    Promoter holding is stable, but disclosures could improve.
  • 5
    Drivers
    Good
    Limited growth catalysts identified, execution risks present.
  • 5
    Technicals
    Good
    Market sentiment is neutral with low liquidity.
Final Score & Verdict
Score 66 / 100 • Decent
The fund shows decent potential but faces challenges in profitability and liquidity. Investors should be cautious.