You are here: Home » Markets » Mutual Funds
Business Standard

80% of Indian large-cap funds underperformed benchmarks in 2020: Report

Four-fifths of Indian large-cap funds have underperformed when compared to benchmark indices in 2020, a report said on Thursday

Topics
Indian stock markets | Indian indices | Mutual Funds

Press Trust of India  |  Mumbai 

Mutual funds, sebi, investors, MF, equity, sensex, market, funds, shares, stocks, FDI, FPI, investment, growth
Representative image

Four-fifths of Indian large-cap funds have underperformed when compared to benchmark indices in 2020, a report said on Thursday.

In the equity-linked saving schemes (ELSS) and mid/small-cap funds, the performance was marginally better with the underperformance of 65 per cent and 67 per cent as against the benchmarks, S&P Indices Versus Active (SPIVA) said.

S&P Dow Jones Indices' associate director for global research and design Akash Jain said the performance was worse if one were to consider the recovery after the hit the trough in April.

"During this recovery period, we saw that the second half of 2020 has been a particularly challenging period for Indian equity active funds where 100 per cent of the Large Cap funds, 80 per cent of the ELSS funds and 53 per cent of the Mid-/Small-cap funds underperformed their respective benchmarks," he said.

Overall, 2020 had extraordinary volatility and India joined the rest of the world in this aspect, Jain added.

There was a strong rebound that began at the start of the second quarter of 2020, which continued into the second half of 2020, with the S&P BSE 100 finishing the six-month period with gains of 36.48 per cent, he said.

In the second half of 2020, the asset-weighted returns lagged their respective benchmark returns in each of the Indian Equity categories, including large-cap funds (by 2.73 per cent), ELSS funds (by 3.18 per cent) and mid/small-cap funds (by 2.30 per cent), a statement said.

The Indian equity mid/small-cap category fared the best for active fund managers over a 10-year investment horizon among all the categories, which were evaluated for the SPIVA India Scorecard, it added.

In the same time frame of 10 years, 68.42 per cent of the actively managed large-cap equity funds in India underperformed the benchmark, it said.

The 'survivorship rate' was low for both large-cap and small/mid-cap funds categories at 70.68 per cent and 71.43 per cent, respectively, the statement noted.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, April 08 2021. 17:46 IST
RECOMMENDED FOR YOU
.