Be cautious if you invest in Mutual Funds, 76% of mutual funds are not giving more returns than the index. mutual fund over 76 percent mutual fund does not outperform index

By Sudhakar Yadav February 13, 2024 8:15 AM IST
Mutual Fund- India TV Paisa
Photo:FILE mutual funds

If you invest in mutual funds then this news is for you. 76 percent of the mutual funds present in the market are not able to give more returns than the index. This has been revealed in the study of 157 mutual fund schemes. Out of these mutual fund schemes, 119 mutual funds have not been able to give returns higher than the index. Only 38 mutual funds have given investors more returns than the index in the last seven years. The study included largecap, midcap, focused funds, largecap, flexicap, ELSS, value funds, smallcap and contra funds, the Economics Times reported. Is.

Midcap category performed worst

Midcap funds have performed the worst among all categories. Of the 21 midcap funds that have completed seven years in the market, 20 schemes have underperformed their index. 90 percent of funds in the large and midcap category have underperformed their category. In this, 18 out of 20 mutual funds have given returns less than their benchmark.

Smallcap category performs best

The performance of funds in the smallcap category has been the best among all. Of the 13 smallcap funds that have completed seven years in the market, only 3 have underperformed their benchmark. The remaining 10 mutual fund schemes have given better returns than the benchmark.

Largecap category disappointed investors

Largecap funds have also disappointed investors. Out of 23 large cap funds included in the study, 19 mutual funds have underperformed. At the same time, the condition of tax saving mutual funds ELSS is also almost the same. 25 out of 32 mutual funds included in the study have underperformed.

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