A staggering 176 new mutual funds – of which 114 are equity funds – were rolled out, the highest in the last five years. These funds pocketed a total of Rs 39,427 crore
We wanted to check if they have hit the ground running. So, we scanned the performance of active equity funds with at least a three-month history, excluding thematic funds.
Of the 20 funds that fit our criteria, we found only three active equity funds slotted in the top quartile (25%) of their respective categories. Here’s a look at these funds.
Return since inception: 2.24 per cent (Launch Date: 26th December, 2023) Category average: 0.05 per cent Rank: 6/35
Return since inception: 30.65 per cent (Launch Date: 5th September, 2023) Category average: 15.44 per cent Rank: 2/78
Return since inception: 27.75 per cent (Launch Date: 19th June, 2023) Category average: 23.76 per cent Rank: 18/75
These are very young funds, and their few months-long performance is not a reliable indicator of future success.
A good fund earns its stripes only if it consistently outpaces its rivals and benchmarks over five to seven years.