Mastering the Investment Game: These Equity Funds Are Changing the Rules

In the backdrop of volatile markets and economic uncertainties, some equity mutual funds are standing the test of time by providing stable returns coupled with risk and resilience. A recent report points out that 54% of equity mutual funds beat their benchmarks in February 2025, with small-cap funds taking the lead—79.31% of these funds beat benchmarks. Focused funds and large & mid-cap funds also did well, demonstrating their tactical flexibility in tough times.

Significantly, long-term investment plans continue to generate staggering gains. SIP investments in best quartile equity schemes have returned more than 12% annualized returns in the last three years, underlining the need for patience and discipline in creating wealth.

Meanwhile, SEBI’s new mutual fund regulations, effective April 2025, aim to enhance transparency and accountability. Asset Management Companies (AMCs) must deploy NFO funds within 30 days or allow investors to exit without penalties—a move designed to optimize fund utilization and protect investor interests.

As India's mutual fund scenario changes, these trends highlight the need for wise decision-making and smart fund choice. Investors are advised to emphasize diversification and long-term objectives to successfully ride out market volatility.

Source: Business Today, Economic Times, CNBC-TV18