3 Equity Mutual Fund Categories Defy Market Trends with Positive Returns in July

In a challenging month for equity markets, only 3 out of 21 equity mutual fund categories recorded positive average returns in July, as per the ETMutualFunds report. International funds stood out with strong performances, while domestic sectoral funds mostly ended in the red.

International Funds Lead with 3.94% Average Return

As per the report, during July 2025, international mutual funds posted an impressive average return of 3.94%. Among the 64 schemes reviewed in this category, the Mirae Asset S&P 500 Top 50 ETF FoF was the top performer, gaining approximately 12.89%. Although most international funds displayed resilience, some, like the HSBC Brazil Fund, saw a decline, losing around 5.93%.

Pharma and Healthcare Funds Deliver Stable Growth

Pharma and healthcare funds followed international funds, with an average return of 3.04%. Among 17 funds, HDFC Pharma and Healthcare Fund led the category with a return of 5.23%. However, not all funds performed positively; the Quant Healthcare Fund dropped 2.56%, pulling down the overall category average.

MNC-Themed Funds Report Marginal Gains

Multinational company (MNC) themed funds recorded a minor average gain of 0.16%. Returns varied within the category, with HDFC MNC Fund, Kotak MNC Fund, and Aditya Birla Sun Life MNC Fund returning between 0.41% and 1.11%. On the flip side, SBI MNC Fund was the poorest performer, falling by nearly 0.99%.

Read More: Indian Mutual Fund Industry Crosses ₹74 Lakh Crore in AUM!

Technology, Services, and Mid-Cap Funds Turns Negative

Of the 18 categories that reported negative returns, technology-focused funds suffered the most with an average loss of 4.22%. All 12 funds in this category posted losses, with Quant Teck Fund falling by a sharp 6.96%. Service industry, financial services, and infrastructure funds also logged negative returns between 2.57% and 3.04%, reflecting broader market volatility.

Large, Mid and Small Cap Funds Experience Declines

Large-cap funds fell 2.36% on average, with Samco Large Cap Fund losing 3.63% and Bandhan Large Cap Fund down by just 0.96%. Mid-cap and small-cap funds recorded losses of 1.92% and 1.23% respectively, though a few funds like Helios Mid Cap Fund and PGIM India Small Cap Fund managed marginal positive returns of 0.17% and 0.92%.

Conclusion

In July 2025, only international, pharma and healthcare, and MNC-themed equity mutual funds offered positive average returns. The rest of the market witnessed broad declines, particularly in technology and sector-specific domestic funds. Investors should continue to monitor global and sectoral trends impacting fund performance.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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.

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