Most of Indian equity-based MFs underperform in last 1 year: Survey
In the last one year, S&P Indices Versus Active Funds scorecard shows 66.29% of large-cap equity funds, 64.29% of ELSS (equity-linked saving schemes) and 71.11% of mid cap and small cap equity funds have underperformed their respective benchmark indices.
In terms of returns to investors, most of the equity focused mutual funds in the country have underperformed their respective benchmark S&P BSE indices, for one year ended December 2016, says a report.
The analysis is part of S&P Dow Jones Indices’ scorecard SPIVA which tracks the performance of actively managed Indian mutual funds against their benchmarks over the one-year, 3-year, 5-year and 10-year periods, as on December 31, 2016.
Over the one year period, the latest SPIVA India (S&P Indices Versus Active Funds) scorecard showed that 66.29% of large-cap equity funds, 64.29% of ELSS (equity-linked saving schemes) and 71.11% of mid cap and small cap equity funds have underperformed their respective benchmark indices.
“Studies reveal that over the one, 3 and 5-year periods ending December 2016, only Indian ELSS funds maintained 100% style consistency,” Asia Index Associate Director (Global Research & Design) Akash Jain said in a statement.
“Over the 10-year period, only 30.63% of Indian Equity Large-Cap funds and 28.57% of Indian Equity Mid and Small-Cap funds preserved their style,” Jain added.
The SPIVA Scorecard also revealed that the majority of the composite bond funds underperformed S&P BSE India bond index over one year, 3-year, 5-year, and 10-year periods.
Besides, most of the government bond funds underperformed S&P BSE India Government Bond Index over three, five and ten year periods.
Asia Index is a 50-50 partnership between S&P Dow Jones Indices and domestic bourse BSE.
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