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.business Updated: Mar 27, 2017 14:14 IST
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.