Over 60% of equity mutual funds outperformed their respective benchmarks over the past month, ending December 31, 2024, according to Prabhudas Lilladher's wealth management arm's most recent mutual fund performance study.This means that 177 of 291 funds outperformed their benchmarks in the final month of 2024.
According to the analysis, equity mutual funds' AUM (assets under management) increased by 0.41% sequentially to Rs 25,84,851 crore in December 2024 from Rs 25,74,205 crore in November 2024 (excluding Sectoral/Thematic Funds).
According to the report, which looked at 291 open-ended equity diversified funds, 60.82% of them outperformed their respective benchmarks in the last month. The total number of funds that outperformed was 177 for the month ending December 31st, 2024. Best-Performing Categories:
Flexi Cap Funds topped the list, with 79.49% of schemes outperforming the benchmark.
Large Cap Funds followed closely, with 71.88% of schemes outperforming their benchmarks.
Multi-cap funds also performed well, with 71.43% of schemes outperforming.
Underperforming Categories: Value Contra Div. Yield Funds performed poorly, with only 36.36% outperforming their benchmarks.
Small and mid-cap funds underperformed larger categories, with only 41.38% and 48.28% of schemes outperforming, respectively.
Breakdown of Key Categories in December 2024:
Large Cap Funds (S&P BSE 100 TRI):
Outperformance: 71.88%
Number of funds: 32
Large & Mid Cap Funds (NIFTY LargeMidcap 250 TRI):
Outperformance: 64.52%
Number of funds: 31
Multi Cap Funds (Nifty500 Multicap 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 Smallcap 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, many large and diversified funds performed well in December.
Investors are advised to stick with their SIP investments and maintain a long-term perspective. According to PL Wealth's report, SIPs have returned more than 15% per year on average for the top quartile of equity funds over the last three years.
