Chart: 64% of equity MFs outperform their respective benchmarks in February

Large & Mid Cap funds was the best performing category where 85% of the schemes outperformed the benchmark

Sixty four per cent of equity mutual funds have outperformed their respective benchmarks in February 2024 while the assets under management ( AUM) of these funds surged 2.76 per cent sequentially to Rs 23,12,396 crore, shows data analysed by PL Wealth Management, Prabhudas Lilladher’s wealth management arm. 

The study was based on an analysis of 277 open-ended equity-diversified funds. 

Large and Mid Cap funds were the best performing categories where 85 per cent of the schemes outperformed the benchmark. It was followed by schemes of Mid Caps and Large Caps which outperformed their respective benchmarks by 83% and 77% respectively, during the month of February 2024.  Small Caps were the worst-performing fund category with only 22 per cent of funds outperforming the benchmark.

On the aspect of aggregate alpha generation, Mid Cap funds were the best-performing categories registering an alpha of 1.2 which was followed by Value Contra Div. Yield Funds registering an alpha of 1.1, ELSS and Large & Mid Cap Funds with an Alpha generation of 1.

The study found that the cumulative total of funds which outperformed stood at 176 during the month ended February 2024, which marked a significant improvement, compared to only 51 per cent of funds that were able to beat their respective benchmarks in the month ended January 31, 2024.