Equity schemes in the red following poor show, regulatory changes

Negative returns reflect sombre mood, especially slump in mid-cap and small-cap stocks

The past year has not been easy for equity fund managers. About 97 per cent of diversified equity schemes are currently in the red and a sizeable number have underperformed their respective benchmark indices over the past year.

Of the 420 equity schemes taken into consideration that include both direct and regular plans, 406 are in the red, data from Value Research shows.

All equity categories, including sectoral funds, are deep in the red. The negative returns reflect the sombre mood in the secondary market, especially the beating taken by mid- and small-cap stocks.

Quite a few schemes have underperformed