These Funds Kept Your Money Safest Amid Worst Market Crash In Four Years
Most large-cap schemes fell worse than the Nifty 50 index, while fewer mid and small-cap schemes fell more than their benchmarks.
The Indian markets experienced a sharp decline on Tuesday following the tighter-than-expected Lok Sabha election results, which contradicted exit polls' predictions.
The NSE Nifty 50 witnessed its most significant single-day drop in over four years. The last instance of such a substantial decline was on March 23, 2020, when the index plummeted by over 13%, triggering the lower price band and briefly halting trading activities on the exchange.
Investors incurred losses exceeding Rs 11 lakh crore in the aftermath of Nifty 50's worst single-day crash in four years.
Mutual fund schemes, spanning broader markets and thematic investment strategies, suffered declines ranging from 4% to 9%. This notable downturn was reflected in the change in net asset values of individual mutual fund schemes, as reported by the Association for Mutual Funds in India.
Schemes That Protected Investor Wealth
Most large-cap schemes underperformed the benchmark index, with 18 out of 29 recording greater declines, while those tracking broader market indices fared relatively better.
Among midcaps, 10 out of 29 fell more than the index, while for small caps, the ratio stood at only three out of 24.
Bandhan Large Cap Fund and SBI Bluechip Fund registered the smallest declines on Tuesday, with decreases of 4.1% and 4.5%, respectively.
In contrast, ITI Large Cap Fund and Bank of India Bluechip Fund were among the schemes that fell more than the benchmark, experiencing declines of 9% and 8.4%, respectively.
SBI Magnum Midcap Fund and PGIM India Midcap Opportunities Fund, within the midcap category, mitigated the decline in investor wealth, falling by 4.1% and 4.7%, respectively, compared to the Nifty Midcap 150 index's 7.1% drop.
In contrast, ITI Mid Cap Fund and Quant Mid Cap Fund experienced the steepest declines in the category, dropping by 9.2% and 8.8%, respectively.
Most small-cap schemes managed to outperform the benchmark as Nifty Smallcap 250 index fell 7.4%.
PGIM India Small Cap Fund and SBI Small Cap Fund had the lowest respective declines of 4.2% and 4.6%.
ITI Small Cap Fund and Quant Small Cap Fund were among the only schemes in the category which underperformed the index, along with Mahindra Manulife Small Cap Fund.
Thematic Funds Face The Brunt
On the other hand, schemes that focused on specific themes like PSU or financial services experienced a wider range of single-day returns, as various baskets of stocks were affected differently by the decline.
The Nifty PSE index, comprising 20 public sector enterprise stocks, plunged by over 16%, marking its largest single-day decline since its inception in 1995.
As a result, the ICICI Prudential PSU Equity Fund recorded the highest decline among sectoral/thematic funds, with its NAV dropping by 12.7%, although less than the index's decline.
