57% equity funds beat benchmarks in 2023; 83% large cap funds outperform

Around 57% equity schemes have managed to beat their respective benchmarks in this year till date, an analysis of data by ETMutualFunds showed. We considered the returns offered by 243 equity schemes in 2023 so far and compared the performance with their respective benchmarks. Around 139 equity schemes have managed to beat their respective benchmarks – an outperformance of 57%. We considered only regular, growth schemes for the study.

Large cap category had the highest percentage of outperformance. Around 25 schemes out of the total 30 schemes outperformed their respective benchmarks. This indicates around 83% outperformance by the category. The large cap category has been struggling to beat their benchmarks since the time Sebi introduced the total return index (TRI) in February 2018.Value fund category had around 74% of outperformance. Flexi cap and ELSS fund categories had 72% and 71% of outperformance respectively.

The multi cap category had around 16 schemes, out of which nine schemes managed to outperform their respective benchmarks. Large & mid cap category had around 26 schemes, and 13 schemes outperformed their respective benchmarks. The category had 50% of outperformance in 2023.

Small cap and mid cap categories had the lowest percentage of outperformance. The categories had only 29% and 17% of outperformance respectively. Despite offering double-digit returns in 2023, these two categories had the lowest percentage of outperformance. We considered equity categories such as large cap, large & mid-cap, mid cap, small cap, flexi cap, focused, contra, value-oriented, multi cap, and ELSS categories for the study. The year-to-date trailing returns of the schemes were compared with their respective benchmarks in the same horizon. The trailing returns for year-to-date horizon were calculated from January 1, 2023 to October 17, 2023.Note, the above exercise is not a recommendation. This is just to see how equity mutual fund categories have performed vis-a-vis their benchmarks in 2023. We have considered their current benchmarks for the study.

One should not make investment or redemption decisions based on the above exercise. Past performance does not guarantee future performance. One should always include risk appetite, investment horizon, and goal before making any investment.

If you are looking for recommendations, see:
Best large & mid cap funds to invest in 2023
Best focused mutual funds to invest in 2023
Best value mutual funds to invest in 2023
Best tax saving mutual funds or ELSS to invest in 2023
Best mid cap mutual funds to invest in 2023
Best small cap mutual funds to invest in 2023
Best flexi cap mutual funds to invest in 2023
Best large cap mutual funds to invest in 2023