In 2020, the pandemic and subsequent lockdowns led to a lot of stock prices dropping drastically within no time. While almost all stocks suffered, small-caps were one the worst-hit. Eventually, the government announced economic stimulus packages to boost liquidity in the system that is still floating in the market. According to a survey by Groww, some equity mutual funds were seen to be popular among investors under various fund categories.
For instance, large-cap funds saw a growth in average Asset Under Management (AUM) of 4.22 per cent. They performed better in 2020 as compared to 2019. The median annual returns of all large-cap mutual funds with Assets Under Management of greater than 500 crores was 13.31 per cent in 2020 as compared to 12.44 per cent in 2019. The average return was more too with Large-cap funds averaging 12.49 per cent in 2020 as compared to 12.35 per cent in 2019.
