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Active Mutual Funds Beat Nifty 500 During Two-Year Slump
The Nifty 500 is a group of many large Indian companies whose performance is used as a market benchmark.
The study said it performed weakly for almost two years after September 26, 2024.
Some mutual funds still made money during that period.
Funds that invest in several types of assets performed especially well.
WhiteOak Multi Asset Allocation Fund had the highest listed return, at 27.16%.
Some small-cap funds also performed strongly, led by Motilal Oswal Small Cap Fund.
However, different funds in the same category produced very different results.
The article says investors should examine risk, costs, portfolios and longer-term performance before choosing a fund.
The study compared mutual-fund returns from September 26, 2024, to September 22, 2026, after the Nifty 500 peaked on September 26, 2024.
WhiteOak Multi Asset Allocation Fund led all listed categories with a 27.16% return, followed by DSP and Mahindra Manulife schemes.
Motilal Oswal Small Cap Fund topped the small-cap category with 25.78%, while Motilal Oswal Multicap Fund led its category with 21.32%.
WhiteOak Mid Cap Fund, Invesco India Large & Midcap Fund and LIC MF Value Fund led their respective categories.
Flexicap returns were lower among the listed leaders, with Helios Flexi Cap Fund topping the category at 9.86%; the article cautioned against choosing funds solely on short-term returns.
- Who
- The study examined actively managed mutual funds across flexicap, multicap, large-and-midcap, midcap, smallcap, value and multi-asset allocation categories.
- What
- It ranked the funds by absolute returns and identified schemes that outperformed during a period when the Nifty 500 underperformed.
- Where
- The funds and benchmark are associated with the Indian mutual-fund and equity market.
- When
- The comparison covered September 26, 2024, to September 22, 2026; the article also refers to data through September 21, 2026.
- Why
- The comparison was conducted to show how individual active funds performed relative to a difficult broader-market period.
Evidence of Active-Fund Outperformance
Reasons for Investor Caution
Meaning of the returns
Evidence of Active-Fund Outperformance
Several actively managed funds delivered positive and, in some categories, substantial returns while the Nifty 500 underperformed for nearly two years.
Reasons for Investor Caution
The results cover only a specific two-year period, and past performance does not indicate future returns.
Choosing among funds
Evidence of Active-Fund Outperformance
The rankings suggest that investors could find significant differences between schemes within the same category.
Reasons for Investor Caution
Investors should also assess portfolios, risk, investment strategy, costs and longer-term performance rather than relying only on the ranking.
Key facts
- Study period
- September 26, 2024, to September 22, 2026
- Nifty 500 reference point
- September 26, 2024 was identified as the index's top
- Highest listed return
- WhiteOak Multi Asset Allocation Fund: 27.16%
- Top small-cap fund
- Motilal Oswal Small Cap Fund: 25.78%
- Top multicap fund
- Motilal Oswal Multicap Fund: 21.32%
- Top midcap fund
- WhiteOak Mid Cap Fund: 18.93%
- Top flexicap fund
- Helios Flexi Cap Fund: 9.86%
Sources
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