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India's Top Equity MFs: Protecting Investors Amidst Market Selloff?
M
Moneycontrol•01-10-2026, 15:04
India's Top Equity MFs: Protecting Investors Amidst Market Selloff?
- •Indian equities are experiencing a significant selloff, with the Nifty 50 down nearly 7 percent over the past month, reaching a six-month low.
- •Investors question if actively managed funds are cushioning the fall or declining at the same rate as their benchmarks.
- •Nippon India Small Cap Fund stands out, gaining 1.24 percent over two months while its benchmark slipped 0.10 percent.
- •Parag Parikh Flexi Cap Fund also cushioned the latest fall, declining 2.85 percent compared to a 5.34 percent fall in its benchmark over two months.
- •The largest large-cap, mid-cap, and multi-cap funds have generally fallen slightly more than their benchmarks over the last two months, indicating that size doesn't guarantee better downside protection.
Key Questions Answered
The biggest large-cap, mid-cap, and multi-cap funds all fell slightly more than their respective benchmarks over the latest two-month correction, showing that being the largest fund in a category does not automatically guarantee superior downside protection.
Nippon India Small Cap Fund stood out by gaining 1.24 percent over two months while its benchmark slipped, and Parag Parikh Flexi Cap Fund declined by 2.85 percent compared to a 5.34 percent drop in the Nifty 500 TRI.
HDFC Balanced Advantage Fund dropped 3.74 percent over the latest two months and 5.53 percent YTD, demonstrating smaller declines than the Nifty 50 TRI, though its ability to shift between equity and debt means it is not a direct peer to pure-equity funds.
