61% of Equity Mutual Funds in India Surpass Benchmarks in December 2024
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Synopsis
In December 2024, a report revealed that about 60.8% of equity mutual funds in India outperformed their benchmarks, with Flexi Cap Funds leading the charge. The assets under management for equity MFs increased slightly, and investors are encouraged to maintain a long-term focus through SIPs.
Key Takeaways
- About 60.8% of equity MFs outperformed benchmarks.
- Flexi Cap Funds had the highest performance at 79.49%.
- Large Cap and Multi Cap Funds also performed well.
- Investors should focus on SIP investments for long-term gains.
- AUM rose to Rs 25.84 lakh crore.
Mumbai, Jan 24 (NationPress) Approximately 60.8% of equity mutual funds (MFs) in India exceeded their respective benchmarks in December 2024, according to a report released on Friday.
The analysis, which covered 291 open-ended diversified equity funds, revealed that 177 funds achieved returns surpassing their benchmarks in December 2024.
The assets under management (AUM) for equity mutual funds experienced a slight increase of 0.41%, reaching Rs 25.84 lakh crore in December, up from Rs 25.74 lakh crore in November 2024, as reported by PL Wealth Management, a division of Prabhudas Liladhar.
Among various fund categories, Flexi Cap Funds emerged as the top performers, with 79.49% of the schemes outperforming their benchmarks.
Large Cap Funds and Multi Cap Funds followed closely, with 71.88% and 71.43% of their schemes beating their respective benchmarks during December, the report highlighted.
Conversely, Value, Contra, and Dividend Yield Funds represented the lowest-performing category, with just 36.36% of the funds in this group managing to surpass their benchmarks.
Other categories, including Equity Linked Savings Schemes (ELSS), also showed strong results, with 69.05% of the schemes outperforming their benchmarks.
However, Small Cap Funds and Mid Cap Funds displayed more moderate performance, with 41.38% and 48.28% of their schemes, respectively, exceeding their benchmarks.
“Investors are encouraged to maintain their SIP investments and adopt a long-term perspective. SIPs over the past three years have produced an average return of over 15% per annum for the top quartile equity funds,” the report by PL Wealth Management advised.
Furthermore, actively managed equity mutual fund inflows witnessed more than 14% monthly growth, totaling Rs 41,155.9 crore in December, according to the latest data from the Association of Mutual Funds of India (AMFI).
