Did Over 38% of Equity MFs in India Outperform Benchmarks in March?
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Synopsis
Discover the latest insights on equity mutual funds in India, where over 38% of funds outperformed their benchmarks in March. What does this mean for investors? Read on to find out how various fund categories performed and what trends are emerging in the mutual fund landscape.
Key Takeaways
- 38.64% of equity MFs outperformed benchmarks in March.
- Large cap funds led with 71.88% outperforming.
- Small cap funds struggled, with only 10% surpassing their benchmark.
- Equity mutual fund AUM increased by 7.68% in March.
- February showed over half of funds outperforming benchmarks.
Mumbai, April 28 (NationPress) In March 2025, approximately 38.64% of 298 open-ended equity diversified mutual funds in India surpassed their respective benchmarks, according to a report released on Monday.
The assets under management (AUM) of equity mutual funds, excluding sectoral and thematic funds, increased by 7.68%, rising from Rs 23.12 lakh crore in February to Rs 24.90 lakh crore in March, as stated by PL Wealth Management, the wealth management division of PL Capital.
Among various fund categories, large cap funds emerged as the top performers, with approximately 71.88% of large cap schemes outpacing their benchmark — the Nifty 50 TRI — during this period.
Large and mid-cap funds followed closely, as 58.06% of these funds outperformed their benchmark — the Nifty LargeMidcap 250 TRI.
Mid-cap funds also demonstrated robust performance, with 51.72% of schemes exceeding the Nifty Midcap 150 TRI benchmark, according to the report.
In contrast, small cap funds exhibited the weakest performance, with only 10% of the funds outperforming their benchmark, the Nifty Smallcap 250 TRI.
Other categories such as flexi cap funds, focused funds, and value/contra/dividend yield funds showed moderate performance, with outperformance rates ranging from 27% to 37%.
Earlier, PL Wealth Management reported that over half of India's equity mutual funds were able to outperform their benchmarks in February.
The prior analysis of 294 open-ended equity diversified funds indicated that 54.08% of the schemes provided better returns than their benchmarks during that month.
In February, small-cap funds were the standout performers, with nearly 79.31% of small-cap schemes exceeding the Nifty Smallcap 250 benchmark, positioning them as the top-performing category for that month.
Focused funds also exhibited strong results, with 67.86% outperforming their respective benchmarks during the same period.
Large and mid-cap funds were not far behind, as 65.63% of schemes surpassed the returns of the Nifty LargeMidcap 250 benchmark in February, according to the report.
Point of View
I emphasize the significance of these statistics in the current investment climate. The resilience shown by equity mutual funds amidst market fluctuations indicates a shift in investor sentiment. Understanding these trends is vital for making informed financial decisions.
NationPress
24/05/2025
Frequently Asked Questions
What percentage of equity mutual funds in India outperformed their benchmarks in March?
Approximately 38.64% of equity mutual funds in India outperformed their respective benchmarks in March 2025.
Which fund category performed best in March?
Large cap funds were the best performers, with around 71.88% surpassing their benchmark.
How did small cap funds perform?
Small cap funds had the weakest performance, with only 10% outperforming their benchmark.
What was the AUM increase for equity mutual funds in March?
The assets under management rose by 7.68%, from Rs 23.12 lakh crore in February to Rs 24.90 lakh crore in March.
What insights can be drawn from February's performance?
In February, over half of the equity mutual funds outperformed their benchmarks, indicating strong market trends.
