Over the past 5 months, India’s equity markets have been experiencing a significant correction, driven by high valuations, geopolitical tensions, and persistent foreign institutional investor (FII) selling.
The BSE Sensex declined by 12.2%, while the BSE Midcap and Smallcap indices saw even sharper falls of 18.6% and 20.5%, respectively.
Despite this downturn, some equity mutual funds have managed to limit losses better than others. Let’s check out the top five mutual funds that have effectively navigated this correction, mitigating losses and outperforming their peers.
The Parag Parikh Flexi Cap Fund has shown notable resilience, with its NAV declining only 4.3% in the last 5 months, significantly outperforming the category average drop of 14.9%.
It has a strategic asset allocation, with 61.5% of its holdings in large-cap stocks, 2.6% in mid-cap stocks, 2.6% in small-cap stocks, 13.7% in overseas equities, and 10% in debt instruments, with the remaining balance held in cash.
Among its key investments are HDFC Bank, Bajaj Holdings & Investment, Power Grid Corporation of India, Coal India, and ITC.
Motilal Oswal Large Cap Fund has focused on a concentrated portfolio of approximately 40 high-quality stocks with strong growth potential. Its NAV declined by only 6% over the past 5 months, significantly better than the category average drop of 13.1%.
The fund maintains 87.5% of its assets in large caps, 3% in mid caps, and 7.3% in small caps, with the remaining portion held in cash.
Its key stock holdings include HDFC Bank, ICICI Bank, Reliance Industries, Infosys, and Bajaj Holdings & Investments.
Motilal Oswal Multi Cap Fund has managed to outperform many of its peers, with a NAV decline of just 6.4% compared to the category average drop of 15.3%.
This fund balances its exposure across market caps, with 24% in large caps, 28.4% in mid caps, and 25.6% in small caps, along with additional exposure in derivatives and cash holdings.
Some of its key investments include Coforge, Polycab India, Trent, Shaily Engineering Plastics, and Persistent Systems.
HDFC Focused 30 Fund has outperformed its category peers, with its NAV decreasing by 8.2% over the last five months, compared to the category average drop of 14.5%.
The fund primarily invests in large-cap companies, allocating 66.2% of its assets to large caps, 3.8% to mid caps, 13.9% to small caps, and 3% to REITs & InvITs, with the rest in cash.
Some of its major holdings include ICICI Bank, HDFC Bank, Axis Bank, Maruti Suzuki India, and SBI Life Insurance Company.
DSP Value Fund NAV declined by only 5.9% over the last 5 months, significantly better than the category average drop of 14.6%.
The fund maintains a diversified portfolio, allocating 44.3% of its assets to large caps, 6.5% to mid caps, 14.9% to small caps, 21.1% to overseas mutual fund units, and 9.8% to overseas equities and ADRs & GDRs, with the rest held in cash.
Its portfolio includes investments in HDFC Bank, Berkshire Hathaway Inc, Infosys, L&T, and ITC.
The recent market correction has tested the resilience of equity mutual funds, with some managing to navigate the downturn more effectively than others. The funds highlighted in this article have demonstrated relative stability by limiting losses compared to their category averages.
While market fluctuations are inevitable, understanding how different funds respond to volatility can help investors make informed decisions based on their individual financial goals and risk tolerance.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
Published on: Mar 5, 2025, 12:55 PM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
Know MoreWe're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
