Equity MFs Outperform Benchmarks in December 2024: Report

In December 2024, around 60.82 per cent of equity mutual funds managed to outperform their benchmarks. The performance analysis revealed that 177 funds delivered returns above their respective benchmarks for the one-month period ending December 31, 2024, according to PL Wealth Management’s latest report. The report was based on 291 open-ended equity diversified funds.

The assets under management (AUM) of equity mutual funds saw a slight growth of 0.41 per cent in December 2024, rising to Rs 25.84 lakh crore from Rs 25.74 lakh crore in November 2024. These figures exclude sectoral and thematic funds. According to the press release, the performance analysis highlights that categories such as Flexi Cap Funds and Large Cap Funds stood out for their consistent ability to outperform their benchmarks during the month.

Among the various fund categories, Flexi Cap Funds emerged as the top performers, with 79.49 per cent of the schemes outperforming their benchmark index. Large Cap Funds and Multi Cap Funds followed closely, with 71.88 per cent and 71.43 per cent of schemes beating their benchmarks, respectively. Mid Cap Funds saw only 48.28 per cent of the schemes surpassing their benchmarks, Small Cap Funds recorded an even lower figure of 41.38 per cent. Value Contra Dividend Yield Funds performed the worst out of all the categories with only 36.36 percent of the schemes outperforming their benchmark returns.

The report also emphasized the importance of staying committed to systematic investment plans (SIPs) for long-term investment success.

Also, there was a significant net inflow into equity-oriented funds in December 2024, at Rs 41,155.91 crore, according to the data from the Association of Mutual Funds in India (AMFI). This is a 14.5 per cent increase over the previous month. While the net outflow for debt-oriented plans was Rs 1,27,152.63 crore.

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