67% of Equity Funds Beat Benchmarks in August

PL Capital’s Pankaj Shrestha Predicts Positive Impact

The recent decision by the US Federal Reserve to cut interest rates is anticipated to have a positive influence on the Indian capital market, according to Pankaj Shrestha, Head of Investment Services at PL Capital. The rate reduction is expected to stimulate economic growth and attract foreign investment, benefiting Indian equities.

Strong August Performance for Indian Indices

In August, key Indian indices demonstrated robust growth. The Nifty 50 TRI recorded a monthly return of 1.74%, while the Nifty Midcap 150 TRI and Nifty Small Cap 250 TRI posted gains of 0.90% and 1.17%, respectively. These positive performances reflect the overall strength and resilience of the Indian market.

Mutual Funds Outperform Benchmarks

A study conducted by PL Capital revealed that around 67% of open-ended equity diversified mutual funds outperformed their respective benchmarks in August. This significant improvement from July’s 39% indicates a growing number of funds delivering superior returns to investors.

Top-Performing Funds

Several mutual funds stood out with exceptional returns in August. In the Large Cap category, Motilal Oswal Large Cap Fund-Regular (G) led the way with a monthly return of 3.14%. Bandhan Large Cap Fund-Regular (G) also delivered strong performance with a gain of 2.89%.

For investors seeking exposure to both large and mid-cap stocks, Motilal Oswal Large & Midcap Fund-Regular (G) proved to be a top choice, delivering a return of 4.59%. In the Multi Cap category, Motilal Oswal Multi Cap Fund-Regular (G) emerged as the top performer with a remarkable return of 6.64%.

Small-cap funds also showcased impressive results, with Bandhan Small Cap Fund-Regular (G) leading the pack with a growth of 6.31%. In the equity-linked saving scheme (ELSS) category, Motilal Oswal ELSS Tax Saver Fund-Regular (G) delivered a yield of 4.34%.

Conclusion

The positive impact of the US Fed rate cut, coupled with the strong performance of Indian indices and mutual funds, suggests a promising outlook for the Indian capital market. Investors who have been cautious about market fluctuations may find this a favorable time to consider investing in Indian equities. However, it’s essential to conduct thorough research and consult with financial advisors before making any investment decisions.