The latest S&P Indices Versus Active (SPIVA®) India Scorecard reveals that over the one-year period ending June 2019, 80.95 % of Indian ELSS funds, 76.67% of large-cap equity funds, 76.92% of Indian Government Bond Funds and more than 95% of Indian Composite Bond funds underperformed their respective indices.
Akash Jain, Associate Director, Global Research & Design, S&P Dow Jones Indices said: “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% over the ten-year period and a low survivorship rate of 68.33%.”
Over the 10-year period, the return spread for actively managed mid/small-cap equity funds, between the first and the third quartile break points of the fund performance, stood at 3.94%, pointing to a relatively large spread in fund returns. Meanwhile, the return spread for actively managed large-cap equity funds was lower at 2.98% over the same period.
The asset-weighted return for large-cap equity funds was 85 basis points higher than the equal-weighted return over the 10-year period. During the same period, the asset-weighted return of Indian Equity Mid-/Small-Cap funds was 22 basis points higher than their equal-weighted fund return.
Over a 10-year period, the return spread between the first and third quartile break points of the fund performance was 3.20% for Indian ELSS funds.
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