Performance of active schemes fuels mutual fund industry momentum

Improved share of assets outperforming benchmarks to propel growth, says KIE

The improvement in the performance of actively managed mutual fund (MF) schemes is acting as a key tailwind for the nearly Rs 50 trillion industry, Kotak Institutional Equities (KIE) said in a report. The report adds that the two largest listed asset management companies (AMCs) — HDFC and Nippon India — are likely to be the biggest beneficiaries.

“The industry has a solid track record of delivering alpha on 10-year returns (70-80 per cent of assets under management (AUM) beat the benchmark), with shorter duration performance also on an upswing. The share of AUM outperforming on