Small Cap Fund continues to be outperformer in November 2023, giving maximum returns in 3-month to 10-year period

Domestic equity markets rose in November on hopes that the U.S. Federal Reserve might not raise interest rates moving ahead. Expectations that the U.S. Federal Reserve would start cutting interest rates sooner than previously anticipated and fall in global crude oil prices added to the gains.

Bond yields decreased in tandem with a decline in U.S. treasury yields as market participants became more pessimistic about potential rate hikes following the U.S. Federal Reserve's post-monetary policy remarks. Gains were extended following decline in U.S. treasury yields on downbeat U.S. job growth data. The rise was further extended by lower-than-expected consumer inflation statistics for October 2023 both in India and the U.S. The decline in yields on the whole was aided by a drop in the price of crude oil globally. Gains were limited, though, when a weekly government bond auction saw lower-than-expected demand. The robust increase in the revised September 2023 U.S. retail sales data caused the decline in U.S. treasury yields to occur more slowly.

Following are the trends spotted in the Equity Mutual Fund category in this month:

• All categories witnessed positive return across all time period
• Small Cap Fund was the outperformer, giving maximum returns in 3-month to 10-year period
• Value Fund/Contra Fund gave maximum return in 1-week period while mid cap fund gave maximum return in 1-month period

In debt category, all fund categories witnessed positive return across all time period barring Dynamic Bond Fund, Gilt Fund, Medium to Long Duration Fund, Long Duration Fund and Gilt Fund with 10-year constant duration that witnessed negative return in 1-week period.

All fund types in the hybrid, solution-oriented and other category witnessed positive returns across all time periods.

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