40% actively managed regular plans have either outperformed or delivered benchmark returns in 10 years: SEBI

SEBI data shows that 39% actively managed regular plan schemes have either outperformed their respective benchmarks or performed at par with their benchmark in 10-year period ending on February 2023. Such a number is 66% in actively managed direct plan schemes.

Further, SEBI data shows that 23% of the actively managed regular schemes have underperformed their respective benchmark by a margin of at least 1.25% in 10 years compared to 10% actively managed direct schemes as on Feb 2023.

Let us look at this table to know more:

• It will be run on pilot basis under regulatory sandbox i.e. specific schemes will be launched to test the waters
• Fund houses will be allowed to charge base TER irrespective of performance. Base TER can be TER of passive schemes i.e. up to 1%
• Performance fee can be charged if their scheme deliver performance more than indicative return or benchmark return or it can be charged on a pre-decided hurdle rate
• Such a fee will be applicable at the time of redemption 
• Another approach could be including performance fee within TER based on performance of scheme in the previous year 
• Performance linked fee will be optional for fund house