Mutual funds September 2024 roundup: Thematic funds lead the way with double-digit returns, while defence and tech funds lag

With India's equity indices scaling to life high in September, the mutual fund too witnessed a surge with thematic equity mutual funds leading the way delivering double-digit returns. Top performing funds include Motilal Oswal Business Cycle Fund (+) 13.68%, DSP Banking & Financial Services Fund (+) 7.68%, and Motilal Oswal Multi Cap Fund (+) 6.37%.

However, funds linked to defence and technology saw a negative performance with, HDFC Defence Fund (-) 3.49%, and Quant Teck Fund (-) 1.99%.

Top Performing Equity Mutual Funds

(Source - advisorkhoj.com, ValueResearch)

Motilal Oswal Business Cycle Fund - ( Category - Equity Thematic)

The fund was incepted on August 27, 2024. Its Asset Under Management (AUM) is over ₹783.3 crore as of August 30, 2024, with maximum exposure to retail and other service sector. The fund is benchmarked against the NIFTY 500, the benchmark has delivered a 6.7% return in the last month, while the fund outperformed the NIFTY 500 with a 13.68% return in the same period.

A lump sum of ₹1,00,000 invested at inception would have turned into ₹1,08,000 till September 30th.

DSP Banking & Financial Services Fund - (Category - Equity - Sectoral Banking)

The fund was launched on December 8, 2023. Its Asset Under Management (AUM) is over ₹840 crore as of August 30, 2024, with maximum exposure to the financial sector.

Since inception, the fund delivered a 23.3% return outperforming its benchmark NIFTY Financial Services return of 17.94% during the same period. A lump sum ₹1,00,000 invested at inception, would have valued ₹1,23,300 as of September 30, 2024.

Motilal Oswal Multi Cap Fund- ( Category - Equity Multi-cap)

The fund was incepted on June 18, 2024, its Asset Under Management (AUM) is over ₹1,475.80 crore as of August 30, 2024, with maximum exposure to retail and other service sector.

The fund is benchmarked against NIFTY 500 Multicap 50:25:25, in less than 4 months since inception the fund has delivered a return of over 23.45%, outperforming benchmarks 17.18% return.

A lump sum of ₹1,00,000 invested 3 months ago would have turned into ₹1,18,773 till September 30.

Top Losing Equity Mutual Funds

(Source - advisorkhoj.com, ValueResearch)

HDFC Defence Fund- ( Category - Equity Thematic)

The fund was introduced on June 2, 2023. The Asset Under Management (AUM) is over ₹3,952.30 crore as of August 30, 2024, with exposure to defence related capital goods sector.

Since inception the fund delivered 77.92% return outperforming its benchmark NIFTY 50 29.77% during the same period. In the last one month the fund gave a return of (-) 3.49%.

Samco Active Momentum Fund- ( Category - Equity Thematic)

The fund was incepted on July 5, 2023, and its Asset Under Management (AUM) is over ₹880.57 crore as of August 30, 2024, with a maximum financial sector.

The fund is benchmarked against NIFTY 500 TRI, comparing the fund with its benchmark both have delivered almost similar returns. NIFTY 500 in the last one month gave 2.17% while the fund delivered (-) 12.80%.

Quant Teck Fund- ( Category - Equity Thematic- PSU)

The fund was incepted on September 11, 2023. The Asset Under Management (AUM) is over ₹75.7 crore as of August 30, 2024, with exposure towards the IT and Technology sector.

The fund is benchmarked against BSE Teck, the benchmark has delivered a (-) 1.38% return in the last one month, while the fund delivered a return of (-) 3.57% return in the same period.

The performance of mutual funds in September 2024 remained largely sector specific, with thematic funds related to business cycle and financial services delivering strong performance., while funds with exposure to defence and technology struggled during the month.