From an eye-watering start to an eye-catching revival this year, the Indian markets hit an all-time high recently, renewing the greens in the investors' portfolio. Let's see how 'growth funds' have performed this year and which key trends are shaping them. But before proceeding, we'd like to highlight that we pick 'growth' funds from categories such as flexi-cap (including focused funds), large- & mid-cap and value-oriented funds (including contra funds). Their investing styles make them suitable to form the core of your equity portfolio for long-term growth and wealth creation. Active funds steal the show Active fund investors have more than one reason to celebrate right now. Across the categories that make our 'Growth' list coverage, a majority of the active funds have outperformed the index so far in 2023. They have given an alpha of 3-5 per cent on average. This outperformance creates a strong counter argument against passive investing. It shows that a fund manager's expertise does count. Growth style claws its way back Post-COVID, the value style had come back in vogue and significantly outperformed the growth style. However, this year, growth-style funds have also made a comeback. Therefore, investors have gained, irrespective of the style spectrum in this category. On a long-term basis, both styles have delivered similar outcomes, but they are highly cyclical in their yearly performance. Therefore, having a fair representation of growth/GARP and value/contra style funds in your portfolio is better than limiting yourself to just one of them. This will help you counterbalance the style volatility. Choosing between diversified and focused funds is another important type of style diversification. Focused funds have only up to 30 stocks in their portfolio, which makes them more volatile than diversified funds. If you h
Buy, hold, or switch. Get the call.
How's my portfolio doing? What do I need to fix? Where should I invest next? Fund Advisor answers each one. The Advisor Note every Saturday. A live session with Dhirendra Kumar every second Saturday.
No commissions. No conflicts. Since 1991.
See Plans
Already a subscriber ?Log In
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
