The Diwali Effect: Equity Mutual Fund Categories Face Up to 9.5% Losses
Recently, various equity mutual fund categories have experienced losses of up to 9.5%. This decline raises concerns among investors, who are looking to optimize their portfolios for the upcoming festive season. Below are the categories that experienced declines of more than 7.5% during this period.
Consumption Funds
Consumption funds, which focus on companies benefiting from rising consumer demand, have been particularly hit hard, with these funds averaging a loss of around 9.55% over the last month.
PSU Funds
Public Sector Undertaking (PSU) funds, which invest in government-owned companies, have also faced significant losses. PSU-themed funds have experienced a loss of approximately 8.08% over the past month. The ongoing reform and market volatility have created a challenging environment for investors in this category.
Thematic Funds
Thematic funds, which focus on specific investment trends or themes, have also been affected by the recent downturn. Whether targeting sectors like healthcare, technology, or others, many thematic funds have faced significant volatility as market sentiment evolves. Thematic funds have recorded a loss of approximately 7.93% during the specified time period.
MNC Funds
Multinational Corporation (MNC) funds, which invest in foreign companies or domestic companies with significant international exposure, are also experiencing the impact of global market dynamics. MNC-theme mutual funds have experienced an average loss of 7.77% over the past month.
Infrastructure Funds
This fund aims to capitalize on government spending on infrastructure projects and is currently facing challenges due to slow project execution and delays. Infrastructure sector funds have recorded an average loss of approximately 7.71% over the past month.
Energy Funds
Energy funds focus on investments in the oil, gas, and renewable energy sectors and have also faced challenges. Fluctuating crude oil prices and changing energy policies have created a volatile environment for energy investments. Energy theme funds have experienced an average loss of 7.58% over the past month.
Others
Other equity mutual fund categories are also witnessing losses. These include sector-specific funds, small-cap and mid-cap funds, which have been negatively impacted by market corrections and shifting investor sentiment. The other equity categories recorded losses ranging from 0.04% to 7.34% over the past month.
