Equity mutual fund categories that are outperforming markets

Equity mutual fund categories that are outperforming markets

by 5paisa Research Team Last Updated: Dec 15, 2022 - 01:34 pm 26.3k Views
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Markets are still far away from covering their lost grounds. However, there are equity MF categories outperforming the markets. Read on to find out more.

As this week began, the Nifty 50 breached its important resistance levels of 16,200 to 16,400. Moreover, it also went ahead to break the extended neckline from below, but failed to break its 50-Day Exponential Moving Average (EMA). On May 23, 2022, Nifty 50 futures witnessed a negative crossover of 50-Day EMA and 200-Day EMA. This is known as death crossover and is a bearish signal.

As of now Nifty 50 is still struggling to decisively trade above the aforementioned extended neckline and is also facing rejection at 16,600 to 16,650 levels. Therefore, to continue its journey northwards, it needs to breach this level, which would further invite strong resistance at 17,000 levels. On the downside, the immediate support is placed at 16,200 to 16,400 levels. Moreover, for bulls to take the charge, the price also needs to breach its 50-Day EMA and 200-Day EMA.

Having said that, the market (Nifty 500) is declining since October 19, 2021, and so does the equity mutual funds. Nifty 500 Total Returns Index (TRI) declined almost 10%.


Returns (%) * 

Thematic - PSU 


Sectoral - Infrastructure 




Thematic - Consumption 


Thematic - MNC 


Dividend Yield 


















Large & Mid-Cap 


Sectoral - Banking 


Thematic - ESG 




Sectoral - Pharmaceuticals 


Sectoral - IT 


Nifty 500 TRI 


* Median returns for the period October 19, 2021 to June 1, 2022. 

As can be seen in the above table, the equity mutual fund categories such as Thematic – PSU, Sectoral – Infrastructure, Small-Cap, Thematic – Consumption, Thematic – MNC, Dividend Yield, and Multi-Cap outperformed Nifty 500 TRI, whereas categories like Sectoral – Banking, Thematic – ESG, International, Sectoral – Pharmaceuticals and Sectoral – IT largely underperformed the said index.  

Having said that, this in no way means that these will continue to outperform. The markets run in cycles and hence winners do rotate. Therefore, doing due diligence before investing is important. Moreover, having a proper asset allocation in place is equally important. Speaking about equity funds, we believe in long-term investing, flexi-cap funds fetches better risk-adjusted returns and would suit the risk appetite of most investors. 

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Our research team is composed of some highly qualified research professionals, their expertise range across sectors.


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