67% equity mutual funds outperform benchmarks in August

Around 67% equity mutual funds have outperformed their respective benchmarks in August. There were 283 open-ended equity diversified funds and 190 outperformed during the month. In July, 39% of the schemes outperformed their benchmarks.

The assets under management (AUM) of equity mutual funds has surged by 2.04% sequentially to Rs 25.64 lakh crore in August from Rs 25.12 lakh crore in July (excluding Sectoral / Thematic Funds), according to a study by PL Wealth Management.

Source: Ace MF

Large & Mid Cap Funds was the best performing category where 79% of the schemes outperformed the benchmark. This was followed by schemes of focused funds which outperformed their respective benchmarks by 75%. There were 28 focused schemes in the said period and 21 outperformed their benchmarks. During this period, multi cap, mid cap and flexi cap funds were the three categories to have outperformed their respective benchmark by 69% each. Out of 26 multi cap funds, 18 outperformed their benchmarks.

Large Cap Funds had an outperformance score of 55%. Out of 31 large cap funds, 18 outperformed.Out of 28 small cap funds, 15 outperformed their respective benchmarks.

The study highlighted that in the last one year, 88% of value, contra and dividend yield funds outperformed their benchmarks. Around 68% large cap funds have managed to outperform their respective benchmarks in the last one year period. Small cap funds had the lowest outperformance score as only 18% schemes outperformed against their respective benchmarks.

Out of the 283 open-ended equity diversified funds, about 48% of the funds were able to outperform their respective benchmarks over the past one year, ended August 31st,

2024.

The study mentioned that, 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.