61 pc of equity MFs in India outperform respective benchmarks in Dec 2024

Mumbai, Jan 24: About 60.8 per cent of equity mutual funds (MFs) in India outperformed their respective benchmarks in December 2024, a report said on Friday.

The report, which is based on an analysis of 291 open-ended diversified equity funds, found that 177 funds delivered returns above their benchmarks in December 2024.

The assets under management (AUM) of equity mutual funds saw a slight growth of 0.41 per cent, rising to Rs 25.84 lakh crore in December, from Rs 25.74 lakh crore in November 2024, the report by PL Wealth Management, a part of Prabhudas Liladhar said.

Among the various categories of funds, Flexi Cap Funds were the top performers, with 79.49 per cent of the schemes beating their benchmarks.

Large Cap Funds and Multi Cap Funds followed closely, with 71.88 per cent and 71.43 per cent of their schemes outperforming their respective benchmarks during December, the report mentioned.

On the other hand, Value, Contra, and Dividend Yield Funds were the least performing category, with only 36.36 per cent of the funds in this group managing to outperform their benchmarks.

Other categories, such as Equity Linked Savings Schemes (ELSS), also showed strong performance, with 69.05 per cent of the schemes outperforming their benchmarks.

However, Small Cap Funds and Mid Cap Funds had a more modest performance, with 41.38 per cent and 48.28 per cent of their schemes, respectively, beating their benchmarks.

“Investors are advised to stick to their SIP investments and keep a long-term focus. SIPs over the past 3-years have yielded a return in excess of 15 per cent per annum on an average for the top quartile equity funds,’ the report by PL Wealth Management said.

Actively managed equity mutual fund inflows saw over 14 per cent monthly growth at Rs 41,155.9 crore in the month of December, according to latest data by the Association of Mutual Funds of India (AMFI).