Core Insights - The analysis indicates that nearly 46% of equity mutual funds delivered positive returns in FY26, with 253 out of 553 funds achieving this [18] - International funds, particularly those focused on sectors like technology and energy, showed significant returns, with the Nippon India Taiwan Equity Fund leading at 158.46% [19] Performance of Funds - Top-performing international funds included: - Nippon India Taiwan Equity Fund: 158.46% return [19] - DSP World Mining Overseas Equity Omni FoF: 83.26% return [19] - ICICI Pru Strategic Metal and Energy Equity FoF: 69.93% return [19] - DSP Global Clean Energy Overseas Equity Omni FoF: 69.53% return [19] - HSBC Brazil Fund: 56.23% return [19] - Other notable performers: - Edelweiss Greater China Equity Off-shore Fund: 45.48% return [5] - Mirae Asset Global X Artificial Intelligence & Technology ETF FoF: 44.55% return [5] - Mirae Asset S&P 500 Top 50 ETF FoF: 35.82% return [5] - DSP Global Innovation Overseas Equity Omni FoF: 28.84% return [5] - Kotak Global Innovation Overseas Equity Omni FOF: 28.83% return [5] Factors Influencing Performance - The strong performance of international funds was attributed to: - US market strength and an AI-led rally in large-cap tech [6] - Global commodity and energy price increases [7] - Depreciation of the Indian Rupee against the US Dollar [7] - Geopolitical tensions leading to higher oil prices, benefiting global energy and mining companies [7] Recommendations for Investors - Investors are advised to maintain a balanced approach, limiting international fund allocation to no more than 5% of their overall portfolio [8] - A diversified investment strategy is recommended, focusing on large-cap and flexi-cap funds for stability while also including mid-cap and small-cap funds [16] - For FY27, a market cap allocation of 55% in large caps, 20% in mid caps, and 25% in small caps is suggested to manage volatility [16] Negative Performers - Among the 300 funds that reported negative returns, the Quant Teck Fund had the largest loss at approximately 28.13% [13] - Other underperformers included: - Samco Active Momentum Fund: -16.9% [13] - HDFC Technology Fund: -15.33% [14] - Tata Digital India Fund: -14.39% [14] - Invesco India ESG Integration Strategy Fund: -10.21% [14]

Market Performance - In October, Nifty50 and BSE Sensex increased by 4.90% and 4.95% respectively, indicating a strong market performance [1] - A total of 578 equity mutual funds were analyzed, with 568 funds providing positive returns and only 10 funds showing negative returns [1][12] Top Performing Funds - The top-performing fund, Motilal Oswal Nasdaq 100 FOF, achieved a return of 9.02% in October, followed by WOC Digital Bharat Fund and HDFC Technology Fund with returns of 7.58% and 7.05% respectively [1][19] - Other notable technology sector funds included Kotak Technology Fund, ICICI Pru Technology Fund, and Edelweiss Technology Fund, which delivered returns of 6.54%, 6.52%, and 6.42% respectively [5][19] Sector Analysis - The technology sector was a significant contributor to the positive performance of equity mutual funds, with multiple funds in this category ranking among the top performers [1][19] - Funds from Mirae Asset Mutual Fund, such as Mirae Asset Global Electric & Autonomous Vehicles Equity Passive FOF and Mirae Asset Global X Artificial Intelligence & Technology ETF FOF, also performed well with returns of 6.71% and 6.68% respectively [19] Negative Performers - The worst-performing fund was ICICI Pru Strategic Metal and Energy Equity FoF, which lost approximately 5.07% in October [10][19] - Other negative performers included PGIM India Global Select Real Estate Securities FoF with a loss of 1.73% and two funds from ICICI Prudential Mutual Fund, which lost 0.53% and 0.34% respectively [10][19] Earnings Growth Expectations - For FY26, Nifty 50 is expected to post an earnings growth of 8%, with mid and small caps projected to grow by 16% and 10% respectively [16] - The ongoing earnings season indicates steady growth, with large-cap companies expected to achieve 6-7% earnings growth, while mid- and small-cap segments are projected to deliver 14-16% year-on-year earnings growth [15][16] Investment Strategy Recommendations - Experts recommend maintaining a diversified portfolio across various categories, including a market cap mix of 55:23:22 for large, mid, and small caps to ensure stability and liquidity [17] - The supportive macroeconomic factors, such as GDP growth of 7.8% in Q1 FY26 and revised inflation of 2.6% for FY26, are expected to enhance corporate profitability and market sentiment [16]