Equity Mutual Funds Grow in July 2024: PL Wealth Management Reports
In July 2024, the Assets Under Management (AUM) of equity mutual funds increased by 5.37% to Rs 25,12,845.59 crore from Rs 23,84,727.69 crore in June 2024, according to PL Wealth Management.
The observation, based on 283 open-ended equity diversified funds, noted that 39% of these funds outperformed their respective benchmarks by the end of July 2024. The total number of outperforming funds was 109.
AUM measures the total market value of assets managed for clients or investors. Under large-cap funds, 58% of schemes outperformed the S&P BSE 100 – TRI benchmark out of 31 schemes observed. For large and mid-cap funds, 24% of 29 schemes outperformed. In multi-cap funds, 40% of schemes outperformed, while in flexi-cap funds, 33% outperformed. About 38% of midcap schemes outperformed, but no small-cap funds managed to outperform their benchmarks.
Value Contra Div Yield Funds were the best-performing category, with 78% of schemes outperforming their benchmark. Large-cap funds and multi-cap funds followed, with 58% and 40% outperforming, respectively. Large and mid-cap funds were the least performing category, with only 24% outperforming the benchmark.
PL Capital Group, which specialises in research-driven advisory services in the Indian capital markets, operates across 200+ cities in India, serving institutions, corporations, family offices, HNIs, and retail clients both in India and globally.
Doubts Revealed
Equity Mutual Funds -: These are investment funds that pool money from many people to buy shares in companies. The goal is to grow the money over time.
Assets Under Management (AUM) -: This is the total market value of all the investments that a financial company manages for its clients.
PL Wealth Management -: This is a company that helps people manage their money and investments. They give advice on how to grow and protect money.
Open-ended equity diversified funds -: These are types of mutual funds that invest in a variety of company shares and allow investors to buy and sell units at any time.
Benchmarks -: These are standard points of reference, like a score, used to compare the performance of investments.
Large-cap funds -: These funds invest in large, well-established companies that are usually safer but grow more slowly.
Small-cap funds -: These funds invest in smaller companies that can grow quickly but are riskier.
Value Contra Div Yield Funds -: These are special types of funds that look for undervalued stocks, stocks that go against market trends, and stocks that pay dividends.
PL Capital Group -: This is a company that provides advice and research to help people make smart investment decisions.
