Largecap MFs failed to beat benchmarks in the past one year: Report

Interestingly, more than 80 per cent of the actively-managed schemes in the mid- and small-cap category have managed to deliver better returns than the S&P 400 MidSmallCap Index

The proposals in the Union Budget hint that the government will use the mutual fund (MF) route more aggressively to meet this year’s Rs 1-trillion-plus disinvestment target.

It has proposed tax exemptions to exchange traded funds (ETFs) that have central public sector enterprises (CPSEs) as the underlying. These ETFs will get the status of equity-linked savings schemes (ELSS). Additionally, the Budget has proposed extending the concessional tax rate of short-term capital gains to equity-oriented fund of funds (FoF) that are set up for disinvestments in state-owned companies or CPSEs.

"Equity-oriented FoF attract short-term capital gains tax of 30