61% of equity MFs outperform benchmarks in Dec 2024, flexi cap funds lead

Over 60 per cent of equity mutual fund have outperformed their respective benchmarks over the past one month, ending December 31, 2024, said Prabhudas Lilladher’s wealth management arm, in its latest study on mutual fund performance.This means that 177 out of 291 funds performed better than their benchmarks in the last month of 2024.

 

As per the analysis, the AUM (assets under management) of equity mutual funds have witnessed a moderate growth of 0.41% sequentially to Rs 25,84,851 crore in December 2024 from Rs 25,74,205 crore in November 2024 excluding Sectoral / Thematic Funds). 

 

The study, which is based on 291 open-ended equity diversified funds cited that 60.82% of these funds have outperformed their respective benchmarks over the past one month. The cumulative total of funds that outperformed stood at 177 during the month ending December 31st, 2024. 

 

Best Performing Categories:

• Flexi Cap Funds led the pack, with 79.49% of schemes outperforming the benchmark.
• Large Cap Funds followed closely with 71.88% of schemes surpassing their benchmarks.
• Multi Cap Funds also performed strongly, with 71.43% of schemes outperforming.

 

Underperforming Categories:

• Value Contra Div. Yield Funds were the weakest, with only 36.36% of funds outperforming their benchmarks.
• Small Cap Funds and Mid Cap Funds showed weaker performance compared to larger categories, with only 41.38% and 48.28% of schemes outperforming, respectively.

 

Breakdown of Key Categories in December 2024:

Large Cap Funds (S&P BSE 100 TRI):

Outperformance: 71.88%

Number of funds: 32

 

Large & Mid Cap Funds (NIFTY LargeMidcap 250 TRI):

Outperformance: 64.52%

Number of funds: 31

 

Multi Cap Funds (Nifty500 Multicap 50:25:25 TRI):

Outperformance: 71.43%

Number of funds: 28

 

Flexi Cap Funds (NIFTY 500 TRI):

Outperformance: 79.49%

Number of funds: 39

 

Mid Cap Funds (Nifty Midcap 150 TRI):

Outperformance: 48.28%

Number of funds: 29

 

Small Cap Funds (Nifty Smallcap 250 TRI):

Outperformance: 41.38%

Number of funds: 29

 

Equity Linked Savings Schemes (NIFTY 500 TRI):

Outperformance: 69.05%

Number of funds: 42

 

Despite some volatility in the smaller categories, many of the large and diversified funds delivered strong results in December.  

"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% p.a. on an average for the top quartile equity funds," said PL Wealth in its report.