Blitz Bureau
Mumbai: More than 26% of equity mutual funds in India outperformed their respective benchmarks in January 2025, according to a report released on Monday.
The analysis, which examined 291 open-ended equity diversified funds, found that 76 schemes delivered returns exceeding their respective indices during the month.
As per the report by PL Wealth Management, a division of Prabhudas Lilladher, the total assets under management (AUM) for equity mutual funds (excluding sectoral and thematic funds) stood at ₹24.85 lakh crore. This marked a 3.83% decline from December 2024, when the AUM was ₹25.84 lakh crore, and 60.82% of schemes had outperformed their benchmarks.
Small Cap Funds Lead, Large Cap Funds Lag
Among fund categories, Small Cap Funds emerged as the best performers, with 86.21% of schemes surpassing their benchmark, the Nifty Smallcap 250 TRI.
Equity Linked Savings Schemes (ELSS) and Focused Funds followed, with 31.71% and 28.57% of funds beating their respective benchmarks.
In contrast, Large Cap Funds struggled the most, with none of the schemes outperforming the Nifty 50 TRI benchmark.
Other fund categories showed moderate performance—23.08% of Flexi Cap Funds and 17.24% of Mid Cap Funds managed to deliver better returns than their benchmarks.
Long-Term Performance Remains Strong
Looking at a broader time frame, the report found that over the past year, 70.29% of the 276 analysed equity mutual funds outperformed their benchmarks. This was a slight dip from the previous month, where 71.27% of schemes had delivered better-than-benchmark returns over the one-year period.
The report advised investors to remain committed to their systematic investment plans (SIPs) with a long-term perspective. It highlighted that over the past three years, SIPs in the top quartile of equity funds have yielded an average annual return of over 15%.( With inputs from IANS)
