New Delhi, Sept. 6 -- If you are choosing an equity mutual fund mainly because it has a large AUM (assets under management), you may be relying on the wrong indicator. AUM represents the market value of the assets managed by a mutual fund scheme.

It tells investors how large a fund is, but a bigger AUM does not automatically mean better returns. So, let's look at the one-year numbers of equity funds.

The contrast becomes clear when you look at the numbers. Parag Parikh Flexi Cap, the largest fund in the list with an AUM of nearly Rs.1.5 lakh crore, delivered a negative 2.11% return over the last 1 year.

ICICI Prudential Large Cap Fund also slipped 1.44% during the same period.

In contrast, Nippon India Small Cap, which ranks fifth amo...