India’s diversified equity funds bucked the trend in the broader markets to eke out gains in November, as a strong performance by mid- and small-cap shares and sectors such as capital goods supported unit values.

Data from fund tracker Lipper, a Thomson Reuters company, showed that such funds rose only 0.21 percent on average in the month, but outperformed the 30-share BSE Sensex that fell 1.8 percent.

Mahesh Patil of Birla Sun Life Asset Management cited the outperformance of mid- and small-cap stocks as the “main reason” for positive returns generated by diversified equity funds in November.

“Clearly over a medium-term, I think there is some value in small- and mid- cap,” said Patil, the co-chief investment officer at the Birla fund house that manages assets of more than $12 billion.

The Sensex fell as profit-booking and waning demand from foreign institutional investors (FIIs) hurt investor sentiment. FIIs bought shares worth about $1.3 billion in November as compared to around $2.5 billion the previous month, data from market regulator SEBI showed.