Best 5 Performing Equity Mutual Funds Amid Market Crash

The Indian equity market reached its peak in late September 2024, with several stocks across large-cap, mid-cap, and small-cap segments hitting lifetime highs. However, since then, a sharp downturn has led to a decline in equity mutual fund NAVs, ranging from 4% to 26% over the past five months.

Among equity mutual funds, mid-cap and small-cap funds have been the hardest hit, whereas large-cap funds and those with a value-oriented approach have managed to cushion the fall to some extent. While most schemes have struggled in the downturn, a few funds have stood out by not only outperforming their respective benchmarks but also surpassing their category peers.

Here are 5 equity mutual funds that have demonstrated resilience and emerged as top performers in their respective categories during the market correction.

1. Parag Parikh Flexi Cap Fund

• Launch Year: May 2013
• Fund Category: Flexi Cap Fund
• 5-Month NAV Change: -4.3%
• Category Average Decline: -14.9%

Parag Parikh Flexi Cap Fund has exhibited better stability during the recent market correction, recording a much lower decline in NAV compared to the average decline in the flexi cap fund category.

2. DSP Value Fund

• Launch Year: December 2020
• Fund Category: Value Fund
• 5-Month NAV Change: -5.9%
• Category Average Decline: -14.6%

DSP Value Fund focuses on undervalued equity and fixed-income securities. Its defensive investment strategy has helped limit its NAV decline to a much lesser extent compared to the value fund category average.

3. Motilal Oswal Large Cap Fund

• Launch Year: February 2024
• Fund Category: Large Cap Fund
• 5-Month NAV Change: -6.0%
• Category Average Decline: -13.1%

Being a relatively new entrant, the Motilal Oswal Large Cap Fund has managed to perform better than its category average during the market downturn. 

4. Motilal Oswal Multi Cap Fund

• Launch Year: June 2024
• Fund Category: Multi Cap Fund
• 5-Month NAV Change: -6.4%
• Category Average Decline: -15.3%

Despite the broader market correction, the Motilal Oswal Multi Cap Fund has fared better than its category peers.

5. HDFC Focused 30 Fund

• Launch Year: September 2004
• Fund Category: Focused Fund
• 5-Month NAV Change: -8.2%
• Category Average Decline: -14.5%

With a concentrated portfolio of 30 stocks, the HDFC Focused 30 Fund has shown resilience, limiting its downside in comparison to the category average.

Conclusion

While equity mutual funds have faced significant declines during the market correction, certain funds have demonstrated the ability to manage risks effectively and limit losses better than their peers. 

Factors such as fund strategy, asset allocation, and investment approach have played a crucial role in determining performance. Investors must conduct thorough research and consider their risk appetite before making investment decisions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. 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 in the securities market are subject to market risks, read all the related documents carefully before investing.