Over 26% of Indian Equity Mutual Funds Exceed Benchmarks in January
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Synopsis
In January, over 26% of equity mutual funds in India surpassed their benchmarks, with Small Cap Funds leading the performance. Despite a decline in assets under management, long-term SIP investments remain beneficial for investors.
Key Takeaways
- Over 26% of equity MFs outperformed benchmarks in January.
- Small Cap Funds had the highest performance rate at 86.21%.
- AUM for equity MFs was Rs 24,85,844 crore.
- Investors are advised to focus on long-term SIP investments.
- SIPs yielded over 15% returns on average for top quartile funds.
Mumbai, Feb 24 (NationPress) In January of this year, over 26% of equity mutual funds in India surpassed their respective benchmarks, according to a report released on Monday. The analysis covered 291 open-ended equity diversified funds, revealing that 76 mutual fund schemes achieved returns that outperformed their respective indices during the month.
The assets under management (AUM) for equity mutual funds amounted to Rs 24,85,844 crore (excluding sectoral/thematic funds), as stated in the report by PL Wealth Management, part of Prabhudas Liladhar.
However, this represented a decline of 3.83% from Rs 25,84,851 crore in December 2024, when 60.82% of the schemes had outperformed.
The Small Cap Funds emerged as the top-performing category, with 86.21% of schemes exceeding their benchmark – the Nifty Smallcap 250 TRI.
Equity Linked Savings Schemes (ELSS) and Focused Funds followed, with 31.71% and 28.57% of funds outperforming their benchmarks, respectively.
In contrast, Large Cap Funds faced the most challenges, with none of the schemes surpassing the Nifty 50 TRI benchmark.
Other categories like Flexi Cap and Mid Cap Funds exhibited moderate performance, with 23.08% and 17.24% of their schemes beating their benchmarks.
On a broader scale, the report indicated that over the past year, 70.29% of 276 examined equity mutual funds outperformed their respective benchmarks.
In the previous month, for a one-year return metric, 71.27% of the schemes successfully delivered better-than-benchmark returns.
“Investors are encouraged to continue their SIP investments and maintain a long-term perspective,” advised the report by PL Wealth Management.
Additionally, it noted that systematic investment plans (SIPs) over the last three years have yielded an average return of over 15% per annum for the top quartile equity funds.
