Two-thirds of equity mutual funds beat benchmarks in FY25

In the financial year ending March 31, 2025, approximately two-thirds of equity mutual funds have outperformed their benchmarks. An analysis of 268 equity mutual funds showed that 176 of them did better than their respective benchmarks during the period from April 1, 2024, to March 17, 2025. Among these funds, contra mutual funds had the best performance, with all three funds in this category beating their benchmarks. Small-cap funds ranked second, achieving an 81% outperformance score. For example, Nippon India Small Cap Fund limited its losses significantly compared to its benchmark. Mid-cap funds also performed well, with 21 out of 29 schemes outperforming benchmarks. HDFC Mid-Cap Opportunities Fund was one of the top performers in this category. However, some funds like Quant Mid Cap Fund did not do as well, incurring larger losses than their benchmarks. ELSS and large & mid-cap mutual funds showed similar results, with a 69% outperformance score. Multi-cap mutual funds had a 67% success rate, while flexi-cap funds showed 66%. In contrast, value funds had the lowest outperformance at only 45%. Investors are reminded that this performance assessment does not serve as investment advice. It is crucial to consider personal risk tolerance and investment goals before making decisions.