Mid- and small-cap funds steal the show

Fund managers believe the risk-reward equation will now favour large-caps

Equity mutual funds (MFs) have done very well in 2016-17 (FY17), outperforming their benchmarks. The median open-ended equity scheme provided 27 per cent return to its investors in the past 12 months, better than the 17.8 per cent appreciation in the benchmark S&P BSE Sensex during the period. 

MFs didn’t disappoint in the short term either, with a typical equity scheme giving 14.9 per cent returns in the past three months, against the 12.2 per cent return provided by the benchmark index during the period. Not surprisingly, individual investors continue to flock to MFs, with most successful schemes reporting strong