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An analysis of 5-year performance of active equity funds of top 7 fund categories based on their AUM shows that very few schemes in categories like large cap, flexi cap, mid cap and ELSS are able to beat their respective benchmarks.
On the other hand, over 90% of small cap funds have beaten their respective benchmarks handsomely in 5 year period. Also, over half of schemes in categories like large and mid cap funds and thematic funds have beaten their benchmarks by a good margin.
Let us look at the report card of active equity funds based on their 5-year performance as on June 2023:
Large cap
Our analysis shows that 27% of large cap funds have outperformed their benchmark in 5-year period ending on June 2023. However, the extent of outperformance is not so wide. It ranges between 0.12% and 0.63%. Canara Robeco Bluechip Equity Fund, Nippon India Large Cap Fund and ICICI Prudential Bluechip Fund are the top three funds in terms of performance.
Large and midcap funds
Over half of the schemes in this category have outperformed its benchmark. Of the 13 schemes, 7 schemes have beaten their benchmarks in the range of 0.36% and 1.94%. In fact, Mirae Asset Emerging Bluechip Fund has outperformed its benchmark by a margin of 1.94%. Quant Large and MidCap Fund and Tata Large & Mid Cap Fund are two other schemes in this category with healthy outperformance.
Mid cap
Of the total 23 mid cap funds, 35% or 8 mid cap funds have beaten their benchmarks. Quant Mid Cap Fund, PGIM India Midcap Opportunities Fund and SBI Magnum Midcap Fund are the top three funds in terms of performance. The outperformance ranges between 0.35% and 3.71%.
Small cap
14 out of 15 small cap funds have beaten their benchmarks handsomely. The outperformance ranges between 0.77% and 11.98% for five-year period. Quant Small Cap Fund has generated close to 12% additional returns than its benchmark in 5-year period. Axis Small Cap Fund and Nippon India Small Cap funds have generated close to 8% additional returns than their respective benchmarks.
Flexi cap
36% of the total flexi cap funds have generated excess returns than their respective benchmarks. Quant Flexi Cap Fund, Parag Parikh Flexi Cap Fund and HDFC Flexi Cap Fund are the top three funds in the category with highest outperformance. The outperformance ranges between 0.46% and 7.51%.
ELSS
34% of ELSS has beaten their benchmark in 5-year period. Quant Tax Plan, Mirae Asset Tax Saver Fund and Canara Robeco Equity Tax Saver Fund are the top three ELSS in terms of performance.
Sectoral and thematic
Over 50% of the sectoral and thematic funds have outperformed their benchmark in the range of 0.02%-8.86%. Quant Infrastructure Fund, Edelweiss Recently Listed IPO Fund and Tata India Pharma & HealthCare Fund are the top three funds in this space.
Click here to see the complete list of funds. Outperformers marked in yellow.
