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More than 50% large-cap equity funds underperform their benchmark indices

Also, only 37.21% Indian government bonds underperformed the index

Press Trust of India  |  Mumbai 

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More than 50 per cent of the large-cap and mid/small underperformed their respective benchmark indices for one year period ending June 30, says a report.

Asia Index's S&P Indices Versus Active (SPIVA) India Scorecard, 52.87 per cent of large-cap equity funds, 56.52 per cent of mid/small-cap underperformed their respective indices, in the past one year.


Large cap are compared against Large-Cap S&P 100 index, while mid/small cap equities are compared against S&P MidCap index.

Besides, 73.83 per cent of Indian composite bond funds also underperformed their index -- S&P India Bond Index.

"As of June 2007, there were 118 available for Out of these, 40 funds either merged or liquidated over the 10-year period ending June 30 2017 resulting in a survivorship rate of 66 per cent," Asia Index Associate Director (Global Research & Design) Akash Jain said.

"Additionally, 29 funds underperformed the S&P 100, in other words 59 per cent of the funds underperformed the index," it added.

Meanwhile, only 37.21 per cent Indian government underperformed the index -- S&P India Government Bond Index -- over a one year period ending June 30, 2017.

"Over the 10-year period, the return spread for the actively managed large-cap equity funds, between the first and the third quartile break points of the fund performance, stood at 3.11 per cent, pointing to a relatively large spread in fund returns," the report said.

"Owing to the volatile nature of the mid-/small-cap segment of the Indian equity market, the return spread for the actively managed mid-/small-cap was even higher at 4.17 per cent over the same period," it added.

First Published: Fri, October 06 2017. 00:32 IST
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