The Indian equity market peaked in late September 2024 with numerous stocks across the large-cap, mid-cap, and small-cap segments touching their lifetime highs.
However, since then the mood in the market has been sombre as headwinds such as rich valuations, earnings slowdown, global trade uncertainties, etc. weighed on investor sentiments. The BSE Sensex has tumbled 12.2%, BSE Midcap has dropped 18.6%, and BSE Smallcap index has plunged 20.5% from their respective peaks, as of February 21, 2025.
Equity mutual funds across categories too have faced the heat amid the sharp downswing in the market, resulting in declines in NAV in the range of 4-26%, based on 5-month returns.
It is noteworthy that Mid Cap Funds and Small Cap Funds have been the worst hit, while Large-cap oriented funds and funds with a value-biased approach have fared better. While several schemes across sub-categories of equity mutual funds have been struggling, a few managed to outperform not just their respective indices but also majority of their category peers.
In this article we have listed down 5 equity mutual funds that have displayed better resilience in the recent market turmoil, turning out to be top performers in their respective categories:
Parag Parikh Flexi Cap Fund
Launched in May 2013, Parag Parikh Flexi Cap Fund is a Flexi Cap Fund that adopts a value-centric approach to pick quality stocks having a significant margin of safety. It employs a buy-and-hold investment strategy to realise the full potential of its holdings.
In the last 5 months, Parag Parikh Flexi Cap Fund’s NAV has declined by 4.3%, much better than the Flexi Cap Fund category average decline of 14.9%.
As of January 31, 2025, Parag Parikh Flexi Cap Fund has allocated 61.5% of its assets in large caps, 2.6% in mid caps, 2.6% in small caps, 13.7% in overseas equities, 10% in debt instruments, and the balance in cash.
Its top stock holdings comprise HDFC Bank, Bajaj Holdings & Investment, Power Grid Corporation of India, Coal India, and ITC.
DSP Value Fund
Launched in December 2020, DSP Value Fund aims to invest in fundamentally sound domestic and international equities that are trading below their intrinsic value.
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