Best and Worst Performing Equity Mutual Funds of 2024
Indian equity markets have given high returns, even after facing episodes of high volatility by the end of 2024. Many Indian investors stayed hopeful about the country’s growth, even though some stocks looked expensive. Domestic investors infused Rs.4.76 lakh crore into the equity market throughout the year, while foreign investors became net sellers, divesting Rs.2.71 lakh crore in equities.
Year-to-date, the BSE Sensex rose by 11.1% while the broader BSE 500 index climbed 16.3%. For the second year in a row, mid and small-cap stocks did better than large-cap stocks. The BSE Mid-cap index grew by 24.8%, and the BSE Small-cap index went up by 27.9%. This overall growth helped equity mutual funds, with 275 out of 396 funds making returns of 20% or more.
Best Equity Mutual Funds in 2024
In 2024, Motilal Oswal Midcap Fund topped the list with an amazing 51% return so far. Other strong performers included Bandhan Small Cap Fund, which gave a 43.5% return, and Invesco India Focused Fund, with a 42.6% return. Many other funds from Motilal Oswal also did very well, such as Motilal Oswal Small Cap Fund with a 42.1% return, Motilal Oswal Flexi Cap Fund at 41.5%, and Motilal Oswal Large and Midcap Fund with a 40.2% return.
Mid-cap and small-cap funds, along with large and mid-cap funds, outperformed many other categories due to the strong rally in these sectors. Other funds that delivered exceptional returns included Invesco India Midcap Fund, Edelweiss Mid Cap Fund, LIC MF Small Cap Fund, HSBC Large and Midcap Fund, Invesco India Smallcap Fund, Invesco India Large and Mid Cap Fund, and HSBC Midcap Fund, all posting returns ranging from 35% to 40%.
Highest Return from Equity Mutual Funds in 2024
Many sector and thematic funds performed well in 2024. A great number of people invested in such funds, focusing on certain sectors. The best performers were LIC MF Infra Fund with a 47.98% return, and HDFC Defence Fund at 44.5%. Next were HDFC Pharma and Healthcare Fund at 44.37%, and ICICI Pru Pharma Healthcare and Diagnostics Fund at 40.92%. Other good performers consisted of the Bandhan Infrastructure Fund, with returns of 40.37%.
Worst Performing Mutual Funds of Equity in 2024
Even when the market performed well in most areas, some funds really disappointed. The high-risk FMCG, banking, and even a few international funds did not succeed. The lowest return with diversified funds was of the Samco Flexi Cap Fund, at an awful rate of 4.1%. Another such disappointment is ICICI Pru FMCG Fund with just 4.22%, and SBI Magnum Global Fund at just 7.82%.
Some banking and financial services funds, too, were weak performers – like LIC MF Banking and Financial Services Fund at 5.19% and ITI Banking and Financial Services Fund at 11.13% – since banking stocks failed to shine while foreign investors sold shares, mainly over loan concerns and dwindling profits.
International funds, such as Nippon India Japan Equity Fund (8.96%), and Aditya Birla SL International Equity Fund (9.95%), also suffered losses. Others were SBI Equity Minimum Variance Fund (10.18%) and Sundaram Fin Serv Opp Fund (11.39%).
The difference in performance shows that mutual fund returns can be unpredictable. Some funds performed very well, while others were left behind. Investment decisions should not be taken only on the basis of recent results. Investors should focus on their financial goals, how much risk they can take, and how long they plan to invest.
Investors can carefully look over various factors to select the funds likely to perform well in the different conditions of the market. It protects the individual from the ups and downs of the market and makes them investments to match their personal goals.
