'If a fund can’t beat its benchmark, I will sell it': Dhirendra Kumar on when to switch, sell mutual funds

After two blockbuster years of high double-digit gains, 2025 has turned out to be a sobering year for mutual fund investors, with most equity schemes struggling to keep pace with the broader market. Data from Ace Mutual Fund shows that nearly 80% of equity mutual funds failed to beat their respective benchmarks during the year, highlighting the challenges of active fund management in a more volatile and uneven market environment. Advertisement

Benchmark indices delivered modest returns. The BSE Sensex, which tracks 30 of India’s largest companies, rose 8.67% year-to-date, while the Nifty 50 gained 9.87%. The broader Nifty 500 index, which captures wider market participation, was up just 6.04%. Compared with the sharp rallies of 2023 and 2024, these numbers disappointed investors who had