86% of large-cap and mid-cap mutual funds outperform benchmarks in August

Mutual fund investors always look out for the schemes that have outperformed their respective benchmarks over a long period of time. ETMutualFunds analysed some data and found that around 86% of large and mid-cap companies mutual funds have achieved get over In August, there were 29 large- and mid-cap funds in the said period, out of which 25 schemes outperformed their respective benchmarks. In other words, only four funds failed to outperform their respective benchmarks.

Aditya Birla SL Equity Advantage Fund and Axis Growth Opportunities Fund offered returns of 1.81% and 2.41% respectively, compared to 1.06% for their benchmark index (NIFTY LargeMidcap 250 – TRI).

Read also | 11 passive mutual funds lost more than 2% in August. Have you invested in any of them?

The Bank of India Large & Mid Cap Equity Fund and the Baroda BNP Paribas Large & Mid Cap Fund returned 2.03% and 3.80% respectively, compared with 0.95% for their benchmarks (BSE 250 LargeMidCap Index – TRI).

Franklin India Equity Advantage Fund outperformed its benchmark in August. The fund returned 2.06% compared to 1.06% for its benchmark (NIFTY LargeMidcap 250 – TRI). Invesco India Large & Mid Cap Fund managed to outperform its respective benchmark in the same period.

Mirae Asset Large & Midcap Fund, the largest large and midcap fund in terms of assets under management, returned 1.17 per cent in August, compared to 1.06 per cent for its benchmark (NIFTY LargeMidcap 250 – TRI). Sundaram Large and Mid Cap Fund also outperformed its benchmark in August. The fund returned 1.91 per cent in the same period. Read also | PSU mutual funds offer an average return of 85% in a year. Have you invested?

The underperformers

Four large- and mid-cap funds underperformed their respective benchmarks in August.

Tata Large & Mid Cap Fund, the oldest fund in the category, underperformed its benchmark. The fund returned 0.50% as against 1.06% of its benchmark (NIFTY LargeMidcap 250 – TRI). SBI Large & Midcap Fund returned 0.72% as against 1.06% of its benchmark (NIFTY LargeMidcap 250 – TRI).

Two schemes (Quant Large & Mid Cap Fund and Kotak Equity Opportunities Fund) offered negative returns of 1.35% and 0.07% respectively. Both schemes are benchmarked against NIFTY LargeMidcap 250 – TRI, which offered a return of 1.06%.

Large-cap and mid-cap funds returned an average of around 2.02 per cent in August. The schemes are compared to the NIFTY LargeMidcap 250 Index – TRI and the BSE 250 LargeMidCap Index – TRI, which rose 1.06 per cent and 0.95 per cent respectively in August.

Please note that the above exercise does not constitute a recommendation. The exercise was conducted only to find out how the large-cap and mid-cap schemes performed in August compared to their respective benchmarks. No investment or redemption decisions should be made based on the above exercise. Schemes should always be chosen based on risk appetite, investment horizon and objective.

We considered all mid-cap and large-cap funds available in the said period. We considered both regular and growth options. The returns for August were calculated from August 1 to August 31, 2024.

Large and Mid Cap Investment Schemes are suitable for aggressive investors who are willing to invest in mid-cap stocks. These schemes may have higher exposure to large or mid-cap stocks depending on the market conditions and the outlook of the fund manager. Large and Mid Cap Investment Schemes invest a minimum of 35% of total assets in large-cap companies and a minimum of 35% of total assets in mid-cap stocks.

(Disclaimer:The recommendations, suggestions, views and opinions of the experts are their own and do not represent the views of The Economic Times.

If you have any queries regarding mutual funds, message ET Mutual Funds on Facebook or Twitter. Our panel of experts will respond to you. Share your queries on Inquiries [email protected] along with their age, risk profile and Twitter username.