52% equity mutual funds outperform against their benchmarks in 3 years

Around 52% equity mutual funds have outperformed their respective benchmarks in the last three years, an analysis by ETMutualFunds showed. There were 228 equity mutual funds in the said period, of which 119 funds outperformed their respective benchmarks in the said period.

In other words, 109 funds have underperformed their respective benchmarks in the same period indicating an underperformance of 48% in the last three years.

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Contra funds had the highest outperformance score of 100%. There were three funds in the category of which all three outperformed their respective benchmarks in the last three years.


The value funds had an outperformance score of 95% in the last three years. There were 19 funds in the category of which 18 have outperformed their respective benchmarks. Out of 19 funds, only LIC MF Value Fund has failed to outperform its benchmark in the said period.

The next category in the list was multi cap funds. The multi cap funds had an outperformance score of 71%. Out of 14 funds in the category, 10 outperformed their respective benchmarks in the said period. Axis Multicap Fund managed to outperform its benchmark in the said period, followed by ICICI Prudential Multicap Fund which outperformed its benchmark in the similar period.

Large cap funds and flexi cap funds had an outperformance score of 61% and 52% respectively in the last three years. Parag Parikh Flexi Cap Fund, the largest flexi cap fund based on assets managed, has outperformed its benchmark in the same period. HDFC Flexi Cap Fund also managed to beat its benchmark in the similar period.

Half of the ELSS funds have managed to beat their benchmarks in the mentioned period. Out of 36 funds in the ELSS category, 18 have managed to outperform their benchmark in the same period. SBI Long Term Equity Fund, the oldest ELSS fund, managed to outperform its benchmark in the last three years.

Axis ELSS Tax Saver Fund, the oldest ELSS fund, failed to beat its benchmark in the last three years.

Focused funds and large & mid cap funds had an outperformance score of 48% and 38% in the last three years. There were 25 focused funds in the last three years, of which 12 funds managed to outperform their benchmarks in the mentioned period.

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There were 26 large & mid cap funds that have completed three years of existence in the market of which 10 have managed to outperform their benchmarks.

Around 35% small cap funds outperformed against their benchmarks. Out of 23 small cap funds, eight funds have outperformed their respective benchmarks. Nippon India Small Cap Fund, the largest small cap fund based on assets managed, outperformed against its benchmark.

Quant Small Cap Fund which gave 21.37% return in the last three years, outperformed its benchmark Nifty Smallcap 250 - TRI which gave 18.61% in the said period. SBI Small Cap Fund and Kotak Small Cap Fund failed to beat their benchmarks in the same period.

Mid cap funds had the lowest outperformance score. Around 32% mid cap funds outperformed their respective benchmarks in the last three years. HDFC Mid-Cap Opportunities Fund, the largest mid cap fund based on assets managed, managed to outperform its benchmark in the last three years.

Motilal Oswal Midcap Fund and Nippon India Growth Fund outperformed their respective benchmarks in the mentioned period.

We considered all equity categories. We considered regular and growth options. We calculated the returns of equity schemes and their respective benchmarks in the last three years.

Note, the above exercise is not a recommendation. The exercise was done to evaluate which equity mutual funds have outperformed their respective benchmarks in the last three years.

One should not make investment or redemption decisions based on the above exercise. One should always consider risk appetite, investment horizon, and goals before making investment decisions.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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