Thanks to stock selection, mid and small cap funds were the only category to post positive returns (up 0.64%) among equity mutual funds in the September quarter, shows the latest CRISIL report.
The outperformance of mid and small cap funds was largely due to individual stock selection. Portfolio analysis shows stocks covering 25% of assets (27 stocks) gave an average 169% absolute returns over the three-year period ended September 2015, compared with 44% returns for similarly portioned assets (5 stocks) of large cap funds, said CRISIL.
Also, the outperformance of small and midcap funds came with less volatility at 13.92% (measured by standard deviation), compared with 15.37% for large cap funds (represented by CRISIL – AMFI Large Cap Fund Performance Index) over the last three years, the report said.
Further, over a 3 year period, the mid and small cap category gave 26% annualized returns, over 6% higher than ELSS. Mid and small cap funds outperformed all other categories of funds over one year, three year and five year period.
Returns as on September 2015
