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An analysis of the 5-year performance of active equity funds across fund categories shows that in categories like large cap, flexi cap, mid cap, focused and ELSS, just a handful of schemes have beaten their respective benchmarks.
On the other hand, all the schemes in the dividend yield funds have beaten their respective benchmarks in 5 years. Also, over half of the schemes in categories like sectoral and thematic funds, small cap funds and value funds have outperformed their benchmarks.
Let us look at the report card of active equity funds based on their 5-year performance for the period ending on June 28, 2024.
Large cap funds
31% of large cap funds have outperformed their benchmark in a 5-year period. ICICI Prudential Bluechip Fund tops the list and has beaten its benchmark with alpha of 1.71%. Baroda BNP Paribas Large Cap Fund and Nippon India Large Cap Fund are the next two funds in terms of performance.
Alpha ranges between 1.71% and 0.18%
Large and midcap funds
In the large and midcap category, only 4 out of 22 funds or 18% have beaten their benchmark. Leading the pack are Quant Large and Mid Cap Fund with an alpha of 5.27% and Bank of India Large & Mid Cap Equity Fund with an alpha of 1.76%. HDFC Large and Mid Cap Fund and Axis Growth Opportunities Fund have also outperformed their benchmarks with alpha of 0.52% and 0.22%, respectively.
Alpha ranges between 5.27% to 0.22%
Multi-cap funds
Of the total 8 multi-cap funds, 3 funds managed to beat their benchmark and generate alpha. Quant Active Fund generated alpha of 7.78%. Other two funds are Mahindra Manulife Multi Cap Fund and Nippon India Multi Cap Fund.
Alpha ranges between 7.78% to 0.33%
Mid cap funds
Out of the 22 mid cap funds, 5 funds or 23% have outperformed their benchmarks. Leading the way are Quant Mid Cap Fund with an alpha of 6.94%, followed by Motilal Oswal Midcap Fund at 2.76% and Edelweiss Mid Cap Fund at 0.48% alpha.
Alpha ranges between 6.94% to 0.13%
Small cap funds
61% of the total small cap funds have generated returns over their benchmark. Quant Small Cap Fund, Bank of India Small Cap Fund and Nippon India Small Cap Fund are the top three funds in the category with the highest outperformance range of 14.07%, 5.96% and 5.39%, respectively.
Alpha ranges between 14.07% and 0.19%
Value funds
64% or 9 out of 14 funds have beaten their benchmark. JM Value Fund, HSBC Value Fund and ICICI Prudential Value Discovery Fund are the top three funds in terms of performance. They have generated alpha of 6.01%, 4.42% and 4.12%, respectively.
Alpha ranges between 6.01% and 0.66%
ELSS
35% of ELSS funds have beaten their benchmark in the 5-year period. Quant ELSS Tax Saver Fund (13.42%), Bank of India ELSS Tax Saver Fund (7.36%) and SBI Long Term Equity Fund (4.10%) are the top three ELSS in terms of performance.
Alpha ranges between 13.42% to 0.11%
Contra funds
All the 3 three funds in the contra fund category have beaten their benchmark. Their outperformance range are SBI Contra Fund (8.48%), Kotak India EQ Contra Fund (2.66%) and Invesco India Contra Fund (1.09%).
Alpha ranges between 8.48% to 1.09%
Dividend yield fund
All funds in this category too outperformed their benchmark. The highest outperformer of the category is ICICI Prudential Dividend Yield Equity Fund with an outperformance of 9.43%.
Alpha ranges between 9.43% to 0.27%
Focused funds
In the focused fund category, 24% or 4 out of 17 focused funds have generated alpha in 5 years. Quant Focused Fund (3.28%), 360 ONE Focused Equity Fund (2.95%), ICICI Prudential Focused Equity Fund (2.28%) and HDFC Focused 30 Fund (1.32%) are the top focused funds in this category.
Alpha ranges between 3.28% to 1.32%
Sectoral and thematic funds
44 out of 82 or 54% of the sectoral and thematic funds have outperformed their benchmark. Quant Infrastructure Fund has generated the highest alpha of 12.92%. Edelweiss Recently Listed IPO Fund and Sundaram Services Fund are the next top two funds in this space with outperformance of 8.91% and 8.46%, respectively.
Alpha ranges between 12.92% and 0.71%
Flexi cap funds
Of the 23 funds, 30% or 7 funds have outperformed their benchmarks. The leading fund is Quant Flexi Cap Fund with a return of 12.93%. Following Quant Flexi Cap Fund are JM Flexicap Fund and Parag Parikh Flexi Cap Fund, which have outperformed their benchmark by 6.68% and 4.81%, respectively.
Alpha ranges between 12.93% to 0.30%
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