Over 60% Equity Mutual Funds outperformed their benchmarks in December 2024 with Flexi Cap Funds leading
In a latest development in returns of mutual fund investment, more than 60% of the equity mutual funds outperformed their benchmark in December 2024, according to a report. Report says that among 291 funds, 177 delivered a better performance compared with the benchmarks in last month of the year 2024.
Equity Mutual Funds Performance
Equity mutual funds’ assets under management grew by a modest 0.41% from Rs.25,74,205 crore in November 2024 to Rs.25,84,851 crore in December 2024. The growth of diversified equity funds indicated by it, excluding sectoral and thematic funds.
These 291 open-ended diversified equity funds were studied and the report of studies shows that among these fund, 60.82% of funds outperformed in December 2024 from their respective benchmark. It also indicates that 177 funds are performing much better than their respective benchmarks, thereby adding more power to the investors positive sentiment towards the equity mutual fund segment.
Best Performing Categories
The best category on this front is Flexi Cap Funds, as 79.49% of schemes outperformed their benchmarks. This was followed by Large Cap Funds, where 71.88% of the schemes outperformed, and Multi Cap Funds, with 71.43% of the schemes beating their benchmarks.
Underperforming Categories
Value Contra Dividend Yield Funds were the weaker performers, whereby only 36.36 percent of schemes have outperformed their benchmarks.
Small Cap Funds and Mid Cap Funds exhibited weaker performance vis-à-vis larger categories in that only 41.38% and 48.28% respectively, of schemes managed to outperform.
Key Categories Break Down in December 2024
Large Cap Funds (S&P BSE 100 TRI)
- Outperformance: 71.88%
- Number of funds: 32
Large and Mid Cap Funds (NIFTY Large and Midcap 250 TRI)
- Outperformance: 64.52%
- Number of funds: 31
Multi Cap Funds (Nifty500 Multi-cap 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 Small-cap 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, large and diversified funds had a good time in December 2024. Investors should keep the SIP running as well and never lose the vision of long term. The Top quartile equity funds have been showing average returns about 15% over three years. Hence, the method of SIP can be fruitful to creating wealth for a long term in future also.
This performance analysis indicates that equity mutual funds, especially flexi cap and large cap funds, have managed to generate strong returns, promising excellent results for investors who look for diversified portfolios and steady growth.
