Growth funds extend their winning streak

With the equity market facing continued turbulence, it's a good time to reassess the core equity fund categories and their relevance for investors. At Value Research, we group the core equity space under the 'growth' category, which includes flexi-cap, large & midcap and value-oriented funds, with the latest entrant being multi-cap funds. These sub-categories share common traits: broad diversification and a wide investment universe, which makes them well-suited for long-term wealth creation. These funds provide exposure to India's top 500 listed companies, with large caps comprising 67 per cent of the market, mid caps at 21 per cent and small caps having a 12 per cent market representation. In recent years, funds following the value style had an upper hand, while those leaning toward growth stocks lagged. That trend, however, seems to be shifting. Over the past year, while the BSE 500 has delivered a modest 4.97 per cent (as of April 29, 2025), only 13 per cent of stocks with a high value rating (seven or above, as per Value Research Stock Ratings) outperformed, compared to 47 per cent of high-growth stocks. A similar pattern was observed during the recent market correction. Highlights & trends Perfor

This article was originally published on May 16, 2025.