Mutual funds often hold cash, impacting performance. Experts say high cash levels can hinder returns in rising markets but offer opportunities during downturns. Data from July 2025 shows increased cash allocation after market dips. Active and passive funds differ in cash management. Investors should be wary of funds consistently holding high cash, as it may limit growth potential.
GST 2.0 is set to revamp India's indirect tax system. Experts suggest domestic-facing sectors will benefit. Sectors like autos, staples, and retail may see better demand. Premium apparel and luxury cars could face pressure. The revised rates will be effective from September 22, 2025. Investors should consider their risk appetite before tweaking their mutual fund portfolio.
Every mutual fund SIP has delivered double-digit XIRR in the last 10 years, an analysis by ETMutualFunds showed. Nearly 157 equity funds have completed 10 years of existence in the industry, of which 11 have over 20% XIRR in the said period.
Equity mutual funds gave returns up to 26% this year. Around 482 equity mutual funds marked their presence. Nippon India Taiwan Equity Fund topped with 25.59% return. Aditya Birla SL Intl. Equity Fund delivered 25.44%. HDFC Transportation and Logistics Fund gave 18.90%. Shriram Multi Sector Rotation Fund lost the most, around 24.96%. Samco Flexi Cap Fund lost 17.
Gold and silver prices are soaring. Exchange-traded funds based on these metals have given good returns. Tata Gold ETF and Tata Silver ETF are top performers. Experts suggest allocating a portion of investment portfolios to precious metals. Geopolitical tensions and industrial demand are driving the rally. Investors should consider SIPs to manage volatility. Experts recommend aligning investments with long-term goals.
With Trump’s fresh 25% tariff hike taking the total levy on Indian goods to 50%, experts advise mutual fund investors to stay invested and avoid knee-jerk reactions. The focus should be on diversification, trimming exposure to US export-dependent sectors, and continuing SIPs, as volatility aids rupee cost averaging and strengthens long-term wealth creation.
Motilal Oswal Nifty India Defence ETF leads defence funds with strong returns. Hindustan Aeronautics and Bharat Electronics are top holdings. Other funds like Groww Nifty India Defence ETF also show good performance. Defence stocks surged due to increased military spending. A major deal for 97 LCA Tejas Mark 1A fighter jets boosts Hindustan Aeronautics production.
Many equity mutual funds outperformed market benchmarks like Nifty50 and Sensex in the last year. Experts suggest investors focus on consistent performance across market cycles instead of chasing short-term gains. SIPs or STPs are recommended due to current market levels. Diversified equity funds are favored for stability. Investors should align investments with their risk profile and financial goals.
Several international equity mutual funds stood out with stellar returns since last Ganesh Chaturthi. Invesco India – Invesco Global Consumer Trends FoF topped the list with 54.31%, followed by Mirae Asset S&P 500 Top 50 ETF FoF at 47.33%. Other global themes, including China, Taiwan, US tech, and Nasdaq-focused funds, dominated the top performers, many delivering above 30%.
In the past six months, 13 equity mutual funds delivered over 20% returns, led by Invesco India Midcap Fund (26.15%) and Invesco India Large & Midcap Fund (23.73%). Out of 281 funds analyzed, 250 gave double-digit returns, highlighting strong market performance, though investors should consider risk, horizon, and goals.
International mutual funds have delivered impressive returns, averaging 20% in the past year, driven by U.S. tech stocks and global market recovery. However, regulatory limits are emerging, with Edelweiss Mutual Fund restricting subscriptions due to nearing overseas investment thresholds.
Five equity mutual funds delivered over 15% annual returns in the past three calendar years, according to ETMutualFunds. The analysis covered 243 funds and tracked current-year performance. The top five include HDFC Flexi Cap, HDFC Focused, Quant Mid Cap, Quant Value, and a mid-cap/value mix, spanning flexi-cap, focused, mid-cap, and value categories. HDFC Flexi Cap has returned 7.45% so far in 2025.
Invesco India Midcap Fund has shown top returns in the midcap category over three years. The fund has consistently outperformed its category average across various timeframes. Aditya Khemani highlights stock selection and risk management as key to the fund's performance. Experts suggest SIPs for midcap investments due to market volatility.
As numerous new schemes emerge, 35 equity mutual funds in India have marked 25 years. These include ELSS, large and mid-cap, large-cap, flexi-cap, mid-cap, value, contra, multi-cap, and small-cap funds. SBI Long Term Equity Fund, launched in 1993, delivered a 16.36% CAGR, while HDFC ELSS Tax Saver posted the highest at 23.24% since 1996.
Consumption-themed mutual funds have shown strong returns, averaging 12.28% in the last six months, with some funds reaching 18%. Proposed GST rate cuts are expected to further boost demand across sectors like FMCG and consumer durables. However, experts advise a balanced approach, suggesting diversified equity funds may offer better long-term exposure compared to these narrow thematic plays.
Quant Mutual Fund strategically adjusted its portfolio in July, increasing stakes in HDFC Bank and 24 other stocks, including Adani Enterprises and REC. Simultaneously, it reduced holdings in Jio Financial Services and 25 stocks like Reliance Industries. The fund house introduced 18 new stocks, such as State Bank of India, while exiting 15, including SBI Cards.
PPFAS Mutual Fund strategically adjusted its portfolio in July, increasing its stake in Jio Financial Services and 30 other stocks, while reducing its holdings in Reliance Industries and 38 others. New entrants included PB Fintech and HDFC Life Insurance, while exiting completely from 16 stocks like BSE.
