Size not a drag for equity funds: Some of the biggest equity MFs are delivering healthy returns
equity funds in the country are showing that size is just a number. Far from slacking under their bulging mass, these funds are running faster than most of their peers.
The Rs.56,000 crore HDFC Mid Cap Opportunities is the biggest actively managed equity fund in the country. A scheme with a proven track record, its return profile faltered between 2017 and 2021, possibly suggesting that its burgeoning size was inhibiting its performance. However, the fund has made a strong comeback since 2022. It has ranked among the top three performers in the mid-cap category over the past three years. The next big name on the size ladder is Parag Parikh Flexi Cap. This Rs.52,000 crore fund, characterised by its valueconscious investing style and ‘go anywhere’ approach, has been an investor favourite for many years. It has not let its ballooning size dent its performance figures; the fund continues to rank in the top quartile in its category over a three-year horizon. The Rs.48,000 crore ICICI Prudential Bluechip, the biggest large-cap scheme in the country, is another big-ticket offering that has dispelled any concerns over size- led deterioration in its performance. While it went through a lean patch between 2018 and 2020, it has regained its mojo from 2021 onwards. The fund ranks third in its category over a three-year period. It has also comfortably outpaced its index over the past one and three years. HDFC Flexi Cap and Nippon India Small Cap, which boast assets in excess of Rs.40,000 crore, have also starred in their respective categories.
Biggest funds have fetched healthy outcomes
Large corpus did not impact the fund performance.
Investors looking for twin engines of quality and growth.
On this evidence, size appears to be no
Read more on economictimes.indiatimes.com
