80% of equity mutual funds outperform respective benchmarks in October 2024, PL Wealth study finds

In October 2024, 80% of equities mutual funds beat their respective benchmarks, following a recent performance review by PL Wealth Management. The assets under management (AUM) of stock mutual funds fell by 4.03% sequentially, from INR 26,43,291 crore in September 2024 to INR 25,36,803 crore in October 2024, excluding Sectoral/Thematic Funds. The study, which is based on 240 open-ended equity diversified funds, cited that 80% of these funds have outperformed their respective benchmarks over the past month, ending October 31st 2024. The cumulative total of funds that outperformed stood at 192 during the month ending October 31st 2024 (one month).

According to the analysis, the best-performing funds were Value, Contra, and Dividend Yield Funds; 96% of these schemes outperformed their benchmarks. With 86% and 85% of their schemes surpassing their benchmarks, respectively, Flexi Cap Funds and Large & Mid Cap Funds also showed impressive performance. However, with just 60% performance, small-cap funds had the worst results.

The report recommended that investors stick to their long-term objectives and continue their systematic investment plans (SIPs). Over the last three years, SIPs have produced an average annual return of more than 15% for top-quartile equities funds.

According to data released by the Association of Mutual Funds in India (AMFI) on November 11, equity mutual funds saw a record inflow of ₹41,887 crore in October, representing a surge of 21.7% month over month due to strong investments in thematic funds, despite the increased volatility in the stock market.

Compared to ₹24,509 crore in September, the Systematic Investment Plan’s (SIP) monthly contributions reached an all-time high of ₹25,323 crore this month.

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