These 5 Equity Mutual Funds Managed to Outperform During Market Decline
The Indian equity market has witnessed sharp declines in the past few months. After it reached its highest point in late September 2024, the market faced downturns due to several reasons, including global trade issues, expensive stock prices, earning slowdowns, etc. As a result, the BSE Sensex has fallen by 12.1%, the BSE Midcap index has declined by 18.6%, and the BSE Smallcap index has declined by 20.5% from their highest point as of February 21, 2025.
Mid-cap funds and small-cap funds have performed worse amid the market correction, among which large-cap funds have still performed better. While many equity mutual funds have been suffering due to the downfall, a few managed to perform better than other schemes. Let’s take a look at these funds.
1. Parag Parikh Flexi Cap Fund
Parag Parikh Flexi Cap Fund was established in May 2013. It aims to generate long-term capital growth from an actively managed portfolio of equity and equity-related securities. It is a type of investment fund that focuses on choosing high-quality stocks with a good safety margin. It follows a buy-and-hold investment strategy, which allows the investment to grow and reach its full potential.
Over the last 5 months, the Flexi Cap Fund category experienced an average decline of 14.9%. Parag Parikh Flexi Cap Fund’s NAV declined by 4.3%, which is far better than other funds. As of January 31, 2025, the fund has allocated 61.5% of its assets in large caps, 2.6% in mid caps, 2.6% in small caps, 10% in debt instruments, 13.7% in overseas equities, and the balance in cash.
2. DSP Value Fund
The DSP Value Fund was launched in December 2020. The scheme seeks to generate consistent returns by investing in equity and equity-related or fixed-income securities, which are currently undervalued.
In the past 5 months, DSP Value Fund’s NAV has fallen by 5.9%, which is far better than the average decline in the Value Fund Category by 14.6%. As of January 31, 2025, DSP Value Fund has allocated 44.3% of its assets in large caps, 6.5% in mid caps, 14.9% in small caps, 21.1% in overseas mutual fund units, 9.8% in overseas equities and the remaining balance in cash.
3. Motilal Oswal Multi Cap Fund
The Motilal Oswal Multi-Cap Fund was established in June 2024. It aims to achieve long-term capital appreciation by investing in equity and equity-related instruments of large, mid and small caps. Over the last 5 months, its NAV has declined by 6.4%, which is comparatively less than the average fall of 15.3% in the Multi-Cap Fund category.
As of January 31, 2025, Motilal Oswal Multi Cap Fund allotted 24% of its assets in large caps, 28.4% in mid caps, 25.6% in small caps, and the remaining in cash.
4. Motilal Oswal Large Cap Fund
The Motilal Oswal Large Cap Fund was introduced in February 2024. It is an open-ended equity scheme that allows investors to invest in the stock of large-cap companies. Over the last 5 months, the fund’s net asset value (NAV) has fallen by 6% as compared to the average decline of the Large Cap Fund category by 13.1%.
As of January 31, 2025, Motilal Oswal Large Cap Fund allocated 87.5% of its fund in large caps, 3% in mid caps, 7.3% in small caps, and the rest in cash.
5. HDFC Focused 30 Fund
HDFC Focused 30 Fund was established in September 2004. It focuses on generating long-term capital appreciation by investing in equity & equity-related instruments of up to 30 companies. In the last 5 months, the fund’s NAV has dropped by 8.2%, while the average fall in the focused fund category was 14.5%.
As of January 31, 2025, HDFC Focused 30 Fund has allocated 66.2% of its assets in large caps, 3.8% in mid caps, 13.9% in small caps, 3% in real estate investment trusts (REITs) and infrastructure investment trusts (InvITs), and the remaining balance in cash.
It should be noted that the above was the analysis of the best performers amid market decline and not a personal suggestion. Past performance is not a guarantee of future returns.
