Approximately 60.8% of equity mutual funds in India outperformed their respective benchmarks in December 2024, according to a report released on Friday.
The report, based on an analysis of 291 open-ended diversified equity funds, found that 177 funds delivered returns above their benchmarks in December 2024.
Assets under management (AUM) of equity mutual funds saw a slight growth of 0.41%, rising to $319.5 billion in December from $318.1 billion in November 2024, the report by PL Wealth Management, a part of Prabhudas Liladhar, stated.
Among the various categories of funds, Flexi Cap Funds emerged as top performers, with 79.49% of schemes beating their benchmarks.
Large Cap Funds and Multi Cap Funds followed closely, with 71.88% and 71.43% of their schemes outperforming their respective benchmarks in December.
In contrast, Value, Contra, and Dividend Yield Funds were the least performing category, with only 36.36% of the funds in this group managing to outperform their benchmarks.
Other categories, such as Equity Linked Savings Schemes (ELSS), also showed strong performance, with 69.05% of schemes outperforming their benchmarks.
However, Small Cap Funds and Mid Cap Funds had a more modest performance, with 41.38% and 48.28% of their schemes, respectively, beating their benchmarks.
“Investors are advised to stick to their SIP investments and maintain a long-term focus. SIPs over the past three years have yielded a return in excess of 15% per annum on average for the top quartile equity funds,” the report by PL Wealth Management highlighted.
Actively managed equity mutual fund inflows saw over 14% monthly growth, reaching $5.1 billion in December, according to the latest data from the Association of Mutual Funds of India (AMFI).
