How do your mutual fund categories measure-up against Sensex?

The day of July 13, 2018 was when Sensex stepped pass another landmark to reach its new all-time high of 36,740 amid firm global cues and the recent fall in the crude oil prices.

The sudden excitement in the market can also be attributed to the recent GDP number by the World Bank which has put India ahead of France and acknowledges it as the sixth largest economy. Even though Sensex has recovered in the past six months, the broader market indices are still underperforming the Sensex and are yet to recover from the immense downtrend. The mutual fund schemes except large-cap schemes have given negative returns in the last one month.

Now, investors are in love with selective stocks including HDFC Bank, Reliance Industries, TCS, these stocks have a higher weightage in the benchmark indices which have pushed the indices upwards. In terms of earnings, majorly, the blue chip stocks have reported positive earnings growth which has a direct impact on the performance of the large-cap mutual fund schemes. So if we see the performance aspects of the various mutual fund categories the large-cap funds are amongst the toppers.

Even as the developed markets are facing challenges, Indian markets have successfully climbed up and it’s this sign which suggests that the markets are maturing over the period of time. The market rally will pay good in the upcoming period and the mid-cap and small-cap indices are expected to see a recovery as earnings improve.