MF Research is Key to Success in MF Investing

As we come to the end of CY 2022, it is time to take stock of MF performance across categories. While BSE Sensex is flat on YTD basis there are at least 52 per cent of the equity schemes that underperformed their benchmark category in 2022. What is interesting to note is that the percentage of underperformance in Small-Cap funds is the lowest amongst the other equity mutual funds’ category. This goes to show that there is still opportunity in small-caps and micro-caps for generating alpha. The very fact that at least 54 per cent of the multi-cap schemes underperformed their respective benchmark indices highlights the importance of fund selection.