LIC MF Ultra Short Duration Fund(W-IDCW)
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Business Overview
The LIC MF Ultra Short Duration Fund (W-IDCW) is designed for investors seeking a balance between safety and returns. Ideal for those looking to park their funds for a short duration while earning better returns than traditional savings accounts, this fund invests in high-quality debt instruments. Its low volatility makes it suitable for conservative investors and those needing liquidity without compromising on returns.
- Focuses on short-duration debt instruments
- Ideal for conservative investors
- Offers better returns than savings accounts
- Low volatility ensures capital safety
- Suitable for short-term financial goals
- Managed by LIC Mutual Fund's experienced team
Investment Thesis
LIC MF Ultra Short Duration Fund stands out due to its strong backing from the LIC promoter group, ensuring credibility and trust. With the growing demand for digital financial services, this fund is well-positioned for growth. Additionally, its attractive valuation compared to peers makes it a compelling choice for retail investors seeking stable returns.
- Strong promoter group: Backed by LIC, a trusted name in the Indian financial sector.
- Digital services growth: Positioned to benefit from the increasing shift towards digital financial solutions.
- Attractive valuation: Offers competitive pricing compared to similar funds in the market.
- Stable returns: Focused on ultra-short duration assets, minimizing interest rate risk.
- Diversified portfolio: Aims to provide investors with a balanced risk-return profile.
Opportunity vs Risk
- Stable returns in low-interest environment
- Potential for capital appreciation
- Diversification in fixed income portfolio
- Suitable for short-term investors
- Interest rate fluctuations impact returns
- Credit risk from underlying securities
- Market volatility affects NAV
- Limited liquidity compared to equities
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10BusinessHighThe sector is stable but lacks significant growth drivers.
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10GrowthHighRevenue growth is consistent, but profit margins are under pressure.
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10ProfitabilityHighROE and ROCE are acceptable, but cash flow is inconsistent.
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8ValuationHighValuation metrics are in line with peers but show limited upside.
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7BalanceHighDebt levels are manageable, but liquidity is a concern.
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6GovernanceGoodPromoter holding is decent, but disclosures could be improved.
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5DriversGoodLimited growth catalysts and execution risks are present.
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5TechnicalsGoodMarket sentiment is neutral with low liquidity.