An AMFI-CRISIL report has looked at the performance of sectoral and thematic funds against their corresponding Total Returns Index (TRI) benchmarks and found that sectoral funds fared better than their benchmarks during majority of the timeframes.
Performance of sectoral funds compared to their benchmark
|
Category |
3 years |
5 years |
7 years |
10 years |
|
Banking and Financial Services category |
13.81% |
19.48% |
13.04% |
17.31% |
|
Nifty Bank (TRI) |
10.96% |
17.43% |
12.05% |
15.07% |
|
Fast Moving Consumer Goods category |
14.53% |
17.02% |
20.21% |
18.17% |
|
Nifty FMCG (TRI) |
11.12% |
12.68% |
17.65% |
17.95% |
|
Infrastructure category |
9.54% |
17.60% |
8.67% |
6.65% |
|
Nifty Infrastructure (TRI) |
2.11% |
10.02% |
2.43% |
-1.33% |
|
Information Technology category |
7.21% |
16.71% |
12.58% |
13.27% |
|
Nifty IT Index (TRI) |
3.10% |
13.64% |
10.20% |
14.66% |
|
Pharmaceuticals category |
-3.03% |
14.60% |
13.41% |
17.89% |
|
Nifty Pharma (TRI) |
-12.94% |
7.62% |
9.79% |
11.91% |
A quick look at the data reveals that the outperformance vis-à-vis the benchmark is more profound in infrastructure and pharmaceutical category. While the infrastructure funds have generated close to 8% (CAGR) excess returns over their benchmark, pharma funds recorded outperformance of around 6%.
In the periods under review, only IT sector funds have underperformed the benchmark once in the 10-year period.
The report also analyses the performance of equity funds across market capitalisations vis-a-vis their TRI benchmarks and observes a mixed trend. While equity funds have outperformed their respective benchmarks over longer timeframes, the results are mixed in the 3-year period
Performance of major fund indices compared to their benchmarks
|
Index |
3-years |
5-years |
7-years |
10-years |
|
CRISIL – AMFI Large Cap Fund Performance Index |
7.62% |
14.96% |
10.60% |
10.60% |
|
CRISIL – AMFI Diversified Equity Fund Performance Index |
8.57% |
17.15% |
11.78% |
11.25% |
|
CRISIL – AMFI Small & Midcap Fund Performance Index |
12.45% |
23.74% |
17.89% |
14.78% |
|
CRISIL – AMFI ELSS Fund Performance Index |
8.41% |
18.24% |
12.98% |
11.95% |
|
S&P BSE SENSEX (TRI) |
7.14% |
13.48% |
9.47% |
9.32% |
|
Nifty 50 (TRI) |
7.38% |
13.63% |
9.54% |
9.18% |
|
S&P BSE 500 (TRI) |
9.99% |
16.40% |
11.19% |
10.19% |
|
Nifty 500 (TRI) |
9.83% |
16.31% |
11.11% |
10.11% |
|
S&P BSE MidCap (TRI) |
16.07% |
22.69% |
14.38% |
11.09% |
|
Nifty Midcap 100 (TRI) |
14.39% |
21.96% |
14.39% |
13.17% |
Overall, the data highlights that fact that despite the recent volatility in the Indian equity markets, equity mutual funds remain an attractive avenue for wealth-creation over the long term.
