86% large, mid-cap mutual funds outperform benchmarks in August

Mutual fund investors always look for the schemes that have outperformed their respective benchmarks over a long period of time. ETMutualFunds did some data crunching and found that around 86% large & mid cap mutual funds have managed to outperform their respective benchmarks in August. There were 29 large & mid cap funds in the said period, out of which 25 schemes outperformed their respective benchmarks. In other words, only four funds failed to beat their respective benchmarks.

Aditya Birla SL Equity Advantage Fund and Axis Growth Opportunities Fund offered 1.81% and 2.41% returns respectively against 1.06% by their benchmark (NIFTY LargeMidcap 250 – TRI).

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Bank of India Large & Mid Cap Equity Fund and Baroda BNP Paribas Large & Mid Cap Fund gave 2.03% and 3.80% returns respectively against 0.95% by their benchmarks (BSE 250 LargeMidCap Index – TRI).

Franklin India Equity Advantage Fund outperformed its benchmark in August. The fund gave 2.06% return against 1.06% by its benchmark (NIFTY LargeMidcap 250 – TRI). Invesco India Large & Mid Cap Fund managed to beat its respective benchmark in the said period.

Mirae Asset Large & Midcap Fund, the largest large & mid cap fund based on assets managed, offered 1.17% return in August against 1.06% by its benchmark (NIFTY LargeMidcap 250 – TRI).Sundaram Large and Mid Cap Fund also outperformed against its benchmark in August. The scheme offered 1.91% return in the said period. Also Read | PSU Mutual Funds offer an average of 85% return in one year. Did you invest?

Underperformers

Four large & mid cap funds have underperformed against their respective benchmarks in August.

Tata Large & Mid Cap Fund, the oldest fund in the category, underperformed against its benchmark. The fund offered 0.50% return against 1.06% by its benchmark (NIFTY LargeMidcap 250 – TRI). SBI Large & Midcap Fund offered 0.72% against 1.06% by its benchmark (NIFTY LargeMidcap 250 – TRI).

Two schemes – Quant Large & Mid Cap Fund and Kotak Equity Opportunities Fund – offered negative returns of 1.35% and 0.07% respectively. Both the schemes are benchmarked against NIFTY LargeMidcap 250 – TRI which offered 1.06% return.

The large & mid cap funds gave an average return of around 2.02% in August. The schemes are benchmarked against NIFTY LargeMidcap 250 – TRI and BSE 250 LargeMidCap Index – TRI which went up by 1.06% and 0.95% respectively in August.

Note, the above exercise is not a recommendation. The exercise was done just to find out how large & mid cap schemes performed in August against their respective benchmarks. One should not make investment or redemption decisions based on the above exercise. One should always choose schemes based on risk appetite, investment horizon and goal.

We considered all large & mid cap funds available in the said period. We considered the regular and growth options. The returns for August were calculated from August 1 to August 31 ,2024.

Large & mid cap schemes are suitable for aggressive investors who are willing to invest in mid cap stocks. These schemes may have more exposure to large cap or mid cap stocks, based on the market conditions and the outlook of the fund manager. Large & mid cap schemes invest a minimum of 35% of total assets in large cap companies, and a minimum of 35% of total assets in mid cap stocks.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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