LIC MF Nifty 100 ETF
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Investing Reference
Trading Reference
AI Probability Statement
Probability Statement
LIC MF Nifty 100 ETF is currently trading near a strong support level, with the 50-day EMA indicating bullish momentum. If it breaks above the resistance level, there is a potential for a significant upside. However, if it fails to hold the support, a downside risk is present.
Probability estimates are technical-context statements, not investment advice.
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Business Overview
The LIC MF Nifty 100 ETF is a passively managed exchange-traded fund that aims to replicate the performance of the Nifty 100 Index, which includes the top 100 large-cap companies in India. This investment option is ideal for investors seeking diversified exposure to the Indian equity market with the convenience of trading like a stock. It matters because it offers a low-cost way to invest in a broad range of leading companies, making it suitable for both new and seasoned investors looking for stable long-term growth.
- Tracks the Nifty 100 Index for broad market exposure
- Ideal for long-term investors seeking stability
- Low expense ratio compared to actively managed funds
- Easily tradable on stock exchanges
- Offers diversification across multiple sectors
- Managed by LIC Mutual Fund, a trusted name in finance
Investment Thesis
The LIC MF Nifty 100 ETF offers a compelling investment opportunity driven by the credibility of its strong promoter group, robust growth in digital services, and attractive valuation compared to peers. This ETF provides a diversified exposure to top-performing Nifty 100 companies, making it ideal for retail investors seeking long-term growth.
- Strong backing from LIC, enhancing trust and reliability.
- Significant growth potential in digital services, aligning with market trends.
- Attractive valuation compared to similar ETFs, offering better entry points.
- Diversified exposure to top 100 Nifty companies, reducing risk.
- Ideal for long-term investors looking for stable returns.
Opportunity vs Risk
- Diversified exposure to top 100 stocks
- Low expense ratio compared to mutual funds
- Potential for long-term capital appreciation
- Easy to trade on stock exchanges
- Market volatility can affect returns
- Limited historical performance data
- Tracking error may impact returns
- Economic downturns can hurt investments
Peer Perspective
LIC MF Nifty 100 ETF trades at a slight premium compared to peers like SBI ETF Nifty 50 and UTI Nifty Index Fund. A rerating could occur with consistent margin stability and improved growth metrics.
Future Outlook
With a strong market position and a diversified portfolio, LIC MF Nifty 100 ETF is well-positioned for growth, provided the management maintains effective execution and cost control strategies in the evolving economic landscape.
AI FAQs for Retail Users
- Q: What is LIC MF Nifty 100 ETF?A: It is an exchange-traded fund that tracks the Nifty 100 index of top Indian companies.
- Q: How can I invest in LIC MF Nifty 100 ETF?A: You can invest through a brokerage account on stock exchanges like NSE or BSE.
- Q: What are the benefits of investing in this ETF?A: It offers diversification, lower expense ratios, and easy trading like stocks.
- Q: Is there a minimum investment amount?A: Yes, the minimum investment is typically one unit of the ETF, priced at market value.
- Q: What are the risks associated with this ETF?A: Market fluctuations and tracking errors are common risks; consider your risk tolerance before investing.
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10BusinessHighThe ETF tracks a diversified index, but the sector is facing challenges.
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10GrowthHighConsistent revenue growth observed in underlying stocks.
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10ProfitabilityHighROE and ROCE are average, cash flow is stable.
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10ValuationHighValuation metrics are in line with peers.
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8BalanceHighDebt levels are manageable, liquidity is adequate.
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7GovernanceHighPromoter holding is strong, but some concerns on disclosures.
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5DriversGoodGrowth drivers are present, but execution risks exist.
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3TechnicalsLowMarket sentiment is neutral with low momentum.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 65/100
- Governance: 80/100
- Market Confidence: 75/100