Outperformance galore: Most active equity funds beat benchmarks in FY25

Largecap funds have also benefitted from the outperformance of their mid and smallcap allocation in recent years, but long-term performance remains dismal

Majority of equity fund managers were able to squeeze in some extra returns over their benchmarks in 2024-25 (FY25). While some managed to do so by delivering outsized returns during the equity market rally in the first half of the year (H1FY25), others succeeded by limiting the downside during the market downturn.

 

The performance, according to experts, depended on the sectoral allocation. Funds with higher exposure towards financials or lower ownership in information technology (IT) stocks benefited in recent months.

 

“Most active funds, especially largecap schemes, were overweight on financials while being underweight on IT. The market has played out