82% equity mutual funds outperform their benchmarks in October

Despite equity benchmark indices Sensex and Nifty falling by 6% each in October, a vast majority of mutual funds offered negative returns but fell down less when compared to their respective benchmarks. Around 82% of equity mutual funds have managed to outperform their benchmarks. Out of 275 schemes, an overwhelming majority of 226 schemes were able to beat their benchmarks last month. In other words, only 49 equity mutual funds failed to outperform their benchmarks.

Also Read | All equity mutual fund categories offer negative returns in October, lose up to 12%

The highest outperformance was from the contra fund category. There were around three schemes in the category in the said period and all schemes outperformed their respective benchmarks indicating a 100% outperformance in October.

Out of 20 value funds, 19 schemes outperformed their benchmarks indicating 95% of outperformance. Around 91% large cap funds have outperformed against their benchmarks. Out of 32 large cap funds, 29 funds outperformed against their benchmarks.

Out of 39 ELSS or tax-saving funds, 33 schemes outperformed their benchmarks which indicates 85% of ELSS schemes outperformed their benchmarks. The large & mid cap and flexi cap funds had an outperformance score of 83% and 82% respectively in the mentioned period. Both the mid cap and small cap funds had an outperformance score of 79% in October. Out of 27 multi cap funds, 21 schemes have outperformed against their benchmarks in October. The focused funds had the lowest outperformance score of 68%. Out of 28 focused funds, 19 schemes have outperformed against their respective benchmarks. Also Read | Nearly 500 equity mutual funds offer negative returns in October

We considered all equity mutual fund categories excluding sectoral and thematic. We considered regular and growth options. We calculated the performance of schemes from October 1 to October 31 and compared the same with that of the benchmark.

Note, for making investments in equity mutual funds, one should not consider just one month return or outperformance underperformance against its respective benchmarks.

Note, the above exercise is not a recommendation. The exercise was done to find which equity mutual funds have outperformed against their respective benchmarks in October. 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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