48% of equity mutual funds outperform benchmarks in September

Around 48% equity mutual funds have outperformed their respective benchmarks over the past one month, ending September 30, 2024. The total funds that outperformed stood at 137 during the month ending September 30, 2024.

The assets under management (AUM) of equity mutual funds has surged by 3.10% sequentially to Rs 26.43 lakh crore in September 2024 from Rs 25.64 lakh crore in August 2024 (excluding sectoral / thematic funds), according to latest study on mutual fund performance analysis by PL Wealth Management.

Category	Benchmark	Number of schemes	Number of schemes that outperformed	Scheme outperformance (%)
Large Cap Funds	S&P BSE 100 – TRI	32	12	38%
Large & Mid Cap Funds	NIFTY LargeMidcap 250 – TRI	29	14	48%
Multi Cap Funds	Nifty500 Multicap 50:25:25 – TRI	26	13	50%
Flexi Cap Fund	NIFTY 500 – TRI	39	20	51%
Mid Cap Funds	Nifty Midcap 150 – TRI	29	19	66%
Small Cap Funds	Nifty Smallcap 250 – TRI	28	21	75%
Focused Funds	NIFTY 500 – TRI	28	14	50%
Value Contra Div. Yield Funds	NIFTY 500 – TRI	32	6	19%
ELSS Funds	NIFTY 500 – TRI	41	18	44%
Total		284	137	48%

Source: Ace MF

Small cap funds was the best performing category where 75% of the schemes outperformed the benchmark. It was followed by schemes of mid cap funds and flexi cap funds which outperformed their respective benchmarks by 66% and 51% respectively during the month of September 2024.

Around 38% large cap funds managed to outperform their respective benchmarks in September. Value, Contra, Div. Yield Funds were the least performing fund category with only 19% of funds outperforming the benchmark.

For the month ended September, 2024, monthly returns of Nifty 50 TRI, Nifty Midcap 150 TRI and Nifty Small Cap 250 TRI were 2.28%, 1.8% and 1.4% respectively.

In the one-year that ended in September, 2024, Nifty 50 TRI, Nifty Mid Cap 150 TRI and Nifty Small Cap 250 TRI gave returns of 33.00%, 48.21% and 51.49% respectively.

Investors are advised to stick to their SIP investments and keep a long-term focus. SIPs over the past 3-years have yielded a return in excess of 15% p.a. on an average for the top quartile equity funds, mentioned the study.

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