PL Wealth Management has released a report stating that almost 74 per cent of equity mutual fund schemes failed to outperform their benchmark indices last month amidst significant market volatility.
According to the latest analysis on mutual fund performance by the company, out of the 291 diversified open-ended equity funds (excluding thematic funds), only 76 were able to surpass their benchmark indices.
Interestingly, none of the 32 large-cap schemes managed to beat their benchmark index. Similarly, only 3 out of the 29 multi-cap funds and 4 out of the 31 large and mid-cap funds outperformed their benchmark.
On the other hand, small-cap funds showed the highest outperformance, with 86 per cent of the 29 small-cap funds surpassing their benchmark.
Equity-Linked Savings Schemes and Focused Funds also performed well, outperforming their respective benchmarks by 32 per cent and 29 per cent in January.
The total assets under management of equity mutual funds saw a sequential decrease of four per cent to ₹29.47 lakh crore, down from ₹30.57 lakh crore in December.
The data highlights the challenges faced by equity mutual funds in a highly volatile market environment and the importance of selecting the right investment strategies to ensure optimal returns for investors.
