Key Points

The report analysed the performance of 298 open-ended diversified equity schemes, excluding sectoral and thematic funds.

It said "Out of the 298 open-ended equity diversified funds, about 38.64 per cent of the funds were able to outperform their respective benchmarks over the past one month, ended March 31st, 2025".

While overall outperformance declined compared to the previous month--when 54.08 per cent of schemes beat their benchmarks--the study highlighted strong showings from a few key categories, especially large-cap funds.

Large-cap funds delivered the best performance among all categories. About 71.88 per cent of schemes in this segment outperformed the NIFTY 50 TRI benchmark in March.

This was followed by large & mid-cap funds, where 58.06 per cent of schemes beat the NIFTY LargeMidcap 250 TRI.

Mid-cap funds also showed promising results, with 51.72 per cent outperforming the Nifty Midcap 150 TRI benchmark.

On the other hand, small-cap funds struggled the most during the month. Only 10 per cent of these schemes managed to outperform the Nifty Smallcap 250 TRI, making it the weakest-performing category.

For the month ended March 2025, benchmark indices posted strong returns. The Nifty 50 TRI gained 6.31 per cent, Nifty Midcap 150 TRI rose 7.73 per cent, and Nifty Smallcap 250 TRI delivered the highest return at 9.10 per cent.

Despite this, less than 40 per cent of diversified equity funds could beat their respective benchmarks.

The report also assessed the performance of 271 open-ended equity diversified schemes over a one-year period ending March 2025.

During this time, 57.56 per cent of the schemes outperformed their respective benchmarks, although this too marked a decline from the 67.02 per cent outperformance rate recorded in the previous month.

In terms of benchmark returns over one year, Nifty 50 TRI returned 6.65 per cent, Nifty Midcap 150 TRI gained 8.17 per cent, and Nifty Smallcap 250 TRI posted a return of 6.02 per cent.

The data suggests that while actively managed funds have faced pressure in the short term, some categories--particularly large-cap and mid-cap--continue to offer scope for outperformance.

However, the overall decline in the percentage of schemes beating benchmarks, both on a monthly and annual basis, indicates a challenging environment for fund managers.

- ANI