The AUM (assets under management) of equity mutual funds has decreased by 3.83% sequentially, falling to Rs 24,85,844 crore in January 2025 from Rs 25,84,851 crore in December 2024, excluding sectoral/thematic funds, according to a latest study by PL Wealth Management.
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Small-cap funds were the best-performing category, with 86.21% of the schemes outperforming their benchmark. This was followed by Equity Linked Savings Schemes (ELSS) and Focused Funds, which outperformed their respective benchmarks by 31.71% and 28.57%, respectively, during January 2025.
Large-cap funds were the least-performing category, with only 0.00% of funds outperforming the benchmark.
According to the study, for the month ended January 2025, the monthly returns of Nifty 50 TRI, Nifty Midcap 150 TRI, and Nifty Small Cap 250 TRI were -0.45%, -6.09%, and -10.69%, respectively.For the one year ended January 2025, the returns of Nifty 50 TRI, Nifty Mid Cap 150 TRI, and Nifty Small Cap 250 TRI were 9.58%, 11.60%, and 5.89%, respectively.
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Out of the 276 open-ended equity diversified funds for the 1-year returns metric, about 70.29% of the funds were able to outperform their respective benchmarks over the past year, ending on January 31, 2025. In the previous month, for the 1-year return metric, 71.27% of the schemes were able to beat their benchmarks, the study highlighted.
Investors are advised to stick to their SIP investments and maintain a long-term focus. SIPs over the past 3 years have yielded a return of more than 15% p.a. on average for the top quartile equity funds, the study advised.