Mixed Results for Equity Mutual Funds in March 2025: A Deep Dive

In March 2025, 38.64% of equity mutual funds outperformed their benchmarks according to PL Wealth Management. Large-cap funds excelled while small-cap funds struggled. Despite overall strong benchmark returns, fewer funds outperformed compared to the previous month. Over the year, 57.56% of schemes surpassed their benchmarks, indicating tougher conditions for fund managers.

A recent study by PL Wealth Management highlights a mixed performance month for equity mutual funds in March 2025, noting that only 38.64% of actively managed schemes exceeded their benchmarks. The report analyzed 298 open-ended diversified equity schemes, excluding sectoral and thematic funds.

Large-cap funds emerged as the top performers, with 71.88% of schemes outshining the NIFTY 50 TRI benchmark. Large & mid-cap funds followed with a 58.06% outperformance rate against the NIFTY LargeMidcap 250 TRI. Despite strong benchmark returns, less than 40% of diversified funds managed to beat their respective indices.

The report also evaluated the one-year performance of 271 open-ended equity diversified schemes, where 57.56% managed to surpass their benchmarks, a drop from the previous month's 67.02%. The findings suggest challenges for fund managers, though sectors like large-cap and mid-cap continue to show promise for outperforming benchmarks.

(With inputs from agencies.)