The majority of active largecap funds are set to outperform for the second year in a row in 2024, thanks to the strong performance of their midcap and smallcap allocations.
Data from Value Research shows that returns from 83 per cent of the 30 active largecap funds (direct plan) are ahead of the BSE 100 Total Return Index (TRI) on a one-year basis (as of December 24). In 2023, 73 per cent of the schemes had beaten the index.
According to experts, the performance of active largecap funds is cyclical in nature, with their ability to beat the index increasing during phases of smallcap and midcap outperformance relative to largecaps.
"In an environment where smallcap and midcap stocks perform better, active largecap funds are at an advantage as they have significant exposure to smaller companies," said Arun Kumar, head of research at FundsIndia.
This story is from the December 26, 2024 edition of Business Standard.
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This story is from the December 26, 2024 edition of Business Standard.
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