Equity MFs see robust inflows in February; 64% outperform benchmarks, Midcap funds best on alpha generation
- The AUM of equity mutual funds surged by 2.76 per cent sequentially to ₹23,12,396 crore in February 2024 from ₹22,50,336 crore in January 2024.
Equity mutual funds (MFs) saw robust inflows in February 2024 with a record 64 per cent outperforming their respective benchmarks, according to a study based on an analysis of 277 open-ended equity diversified funds conducted by domestic brokerage Prabhudas Lilladher’s wealth management arm.
The assets under management (AUM) of equity mutual funds surged by 2.76 per cent sequentially to ₹23,12,396 crore in February 2024 from ₹22,50,336 crore in January 2024. The funds of large and mid cap category recorded the highest outperformance in percentage terms.
The study found that the cumulative total of funds which outperformed stood at 176 during the month ended February 2024, which marked a significant improvement, compared to only 51 per cent of funds were able to beat their respective benchmarks in the month ended January 31, 2024.
Large and mid cap funds were the best performing category where 85 per cent of the schemes outperformed the benchmark, followed by schemes of mid caps and large caps which outperformed their respective benchmarks by 83 per cent and 77 per cent respectively during February 2024.
Small caps were the worst performing fund category with only 22 per cent of funds outperforming the benchmark. Coming to the aggregate alpha generation, the mid cap funds were the best performing categories registering an alpha of 1.2 which was followed by Value Contra Div. The yield funds registering an alpha of 1.1, ELSS and large and mid cap funds with an Alpha generation of 1, according to PL Wealth Management.
Meanwhile, according to data released by the Association of Mutual Funds in India (AMFI), the net inflows into equity mutual funds soared to a 23-month high in February, led by a surge of investments in thematic or sectoral funds. The total net inflows rose 23 per cent month-on-month to ₹26,865.78 crore, the highest since March 2022.
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Business NewsMutual FundsNewsEquity MFs see robust inflows in February; 64% outperform benchmarks, Midcap funds best on alpha generation
First Published:14 Mar 2024, 08:53 PM IST
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