As small cap and midcap funds continue their outperformance amid the pandemic, an ICICI Securities report has said that the category average return of small cap funds have been around 100 per cent in the past one year.” Small cap funds and midcap funds continue to outperform since last one year with category average return of small cap funds at around 100 per cent in the last one year,” it said. Further, the credit risk funds and medium-term funds are outperforming as a stable yield environment led to higher return in these higher YTM funds. Also, global funds have seen underperformance in the last one year as Indian markets have seen outperformance, noted the report.
Within large cap-oriented ETFs, Nifty Next 50 and Sensex Next 50 have seen outperformance over Nifty 50 ETFs since the last six months. Smart beta ETFs like NV 20/Low Vol 30, Quality 30, among others have underperformed.