In an unusual flip of the trend, most actively managed mutual funds in the large, mid, and smallcap categories have beaten their benchmarks since the start of this fiscal. This is against the trend observed amid bullish market phases where most actively managed schemes struggle to meet or beat benchmark returns.
While 18 of 30 large-cap schemes have outperformed their benchmarks since April 2024, only eight out of 26 have managed to do the same over the last five years.
Small and midcap schemes present a similar trend this fiscal, as well as over the past five years. Fourteen of the 24 small cap schemes managed to beat benchmark returns this year, while less than half—eight out of the 17—managed to do so over a five-year period.
Among midcap schemes, 19 out of 29 schemes have outperformed since April, yet only four out of 23 did the same over last five years.
Nifty 50 is trading 11.8% higher since the start of the fiscal, while broader market indices Nifty Midcap 150 and Nifty Smallcap 250 have delivered returns of 25.7% and 28.7%, respectively, over the same period.
As the trend flipped, out of the five top performing mutual fund schemes of the fiscal so far, three belong to the smallcap category, and one each from smallcaps and the sectoral/thematic category.
Bandhan Small Cap Fund has delivered the highest return across equity oriented schemes at nearly 40% rise in net asset value, which is an 11% outperformance over the six month period.
A closer look at their holdings over the period shows the companies whose market value grew the most over the period.
The market value of holdings in a company can either grow as the value of the underlying stock rises, or as the fund allocates a greater amount to the company.
The largest absolute increase in market value for a company across the five top performing schemes was in Polycab India Ltd., growing by Rs 1,444 crore—which is a fivefold increase in value over the period.
This rise in value was recorded among Motilal Oswal Midcap Fund's holdings, which delivered the third highest returns among active equity schemes so far this year, outperforming its benchmark by 12.7%.
BASF India Ltd. saw the second largest increase in value of its shares held by Tata Small Cap Fund, growing by Rs 309 crore—over double its initial holding value in the scheme.
For the top performing scheme of the fiscal so far, this was recorded by PCBL Ltd.
In terms of a relative increase in value of shares held, Kirloskar Oil Engines Ltd. took the top spot—a holding of Bandhan Small Cap Fund.
Its value grew to 15 times as the stock surged 39.8% since April, and as the fund increased its investment in the stock.
Tata Power Co. saw the largest relative increase in value of shares held by LIC Mutual Fund's Infrastructure Fund.
While the large-cap stock delivered a 16.8% return over the period, outperforming both Nifty 50 and Nifty 100, the value of its shares held by the fund grew 12 times.
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