Mumbai, October 22: Over the one-year period ending June 2019, 80.95 per cent of Indian ELSS funds, 76.67 per cent of large-cap equity funds, 76.92 per cent of Indian Government Bond Funds and more than 95 per cent of Indian Composite Bond funds underperformed their respective indices, said the latest S&P Indices Versus Active (SPIVA) India scorecard,. “In fact, across all the periods studied, the majority of actively managed large-cap equity funds in India underperformed the S&P BSE 100. Large-cap funds witnessed a low style consistency of 16.67 per cent per cent over the ten-year period and a low survivorship rate of 68.33 per cent,” pointed out Akash Jain, Associate Director, Global Research & Design, S&P Dow Jones Indices.
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The research further stated that over the one-year period, the S&P BSE 100 surged 9.79 per cent, with 76.67 per cent of funds underperforming the benchmark. In fact, across all the periods studied, the majority of actively managed large-cap equity funds in India underperformed the S&P BSE 100. “Large-cap funds witnessed a low style consistency of 16.67 per cent over the 10-year period and a low survivorship rate of 68.33 per cent. The asset-weighted fund return was 85 basis points (bps) higher than the equal-weighted fund return over the 10-year period, and the return spread between the first and the third quartile breakpoints of the fund performance was 2.98 per cent for the same period,” stated the report.
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SPIVA India Scorecard compares the performance of actively managed Indian mutual funds with their respective benchmark indices over 1-, 3-, 5-, and 10-year investment horizons. The S&P Dow Jones Indices in this scorecard, studied the performance of three categories of actively managed equity funds and two categories of actively managed bond funds over the 1-, 3-, 5-, and 10-year periods ending in June 2019 to come to this conclusion.
