​5 equity mutual fund categories lose over 4% on average in 3 months. What should investors do?

Around five equity mutual fund categories lost over 4% on average in the last three months. Here is a detailed breakup (Source: Value Research)

Banking sector-based funds, on average, lost 9.51% in the last three months. Kotak Nifty PSU Bank ETF and Nippon India ETF Nifty PSU Bank BeES lost the most of around 17.12% each in the last three months.

Technology sector-based funds, on average, lost 6.98% in the last three months. Bandhan Nifty IT Index Fund and Nippon India Nifty IT Index Fund lost 8.73% and 8.70%, respectively. Quant Teck Fund gained the most, around 10.68%.

Auto and transportation sector funds, on average, lost 5.43% in the last three months. UTI Transportation & Logistics Fund lost the most, around 7.06% in the said time period, followed by Tata Nifty Auto Index Fund, which lost 7.04%.

Largecap funds, on average, lost 4.96% in the last three months. Two funds from ICICI Prudential Mutual Fund lost the most. ICICI Prudential Nifty Top 15 Equal Weight ETF lost the most, around 10.39% in the said time period, followed by ICICI Prudential Nifty Top 15 Equal Weight Index Fund, which lost 10.19%.

ESG theme-based funds, on average, were down 4.54% in the last three months. Kotak ESG Exclusionary Strategy Fund lost the most, around 8.04%. Quant ESG Integration Strategy Fund gained the most, around 9.52%

According to the monthly outlook by Bajaj Finserv Mutual Fund, the AMC continues to favour domestic consumption and financials, while selectively preferring capital goods companies benefiting from global power capex trends.
Sorbh Gupta, Head of Equity, Bajaj Finserv AMC, said that, “Largecap and flexicap funds are expected to remain attractive for long-term investors, while smallcap funds are better suited for disciplined SIP investing. Multi-asset, balanced advantage, and arbitrage strategies continue to offer diversification benefits in volatile conditions.”