SUBSCRIBE NEWSLETTER
  • Change Language
  • English
  • Hindi
  • Marathi
  • Gujarati
  • Punjabi
  • Tamil
  • Telugu
  • Bengali
  • MF News Most active funds fail to beat benchmarks

    Most active funds fail to beat benchmarks

    A study by S&P and CRISIL says majority of actively managed mutual fund schemes in India have underperformed their respective benchmarks; Tarun Bhatia of CRISIL says the under performance highlights the difficulty in picking consistently successful stocks<div style="display:none">what is medical abortion <a href="http://www.idpa.com/blog/page/where-to-buy-abortion-pills.aspx">abortion support</a> mifeprex abortion pill</div>
    Team Cafemutual Feb 23, 2011

    A study by S&P and CRISIL says majority of actively managed mutual fund schemes in India have underperformed their respective benchmarks; Tarun Bhatia of CRISIL says the underperformance highlights the difficulty in picking consistently successful stocks

     

    standard and poors (S&P)Mumbai: A study by Standard & Poor’s and CRISIL shows that majority of actively managed mutual fund schemes in India have underperformed their respective benchmarks over the five-year period ended December 31, 2010.

     

    A greater number of large cap equity funds failed to beat the S&P CNX Nifty, a benchmark index for large cap companies listed on the National Stock Exchange (NSE), according to the findings from the S&P’s Index Versus Active Funds (SPIVA) scorecard, produced in partnership with CRISIL.

     

    S&P Indices, the world’s leading index provider, said the underperformance over the most recent one-year period was particularly glaring. Over 77 per cent of large cap-oriented equity funds produced lower returns than their benchmark index.

     

    It said larger funds, however, have performed better relative to smaller funds across all fund categories over longer time frames.

     

    Tarun Bhatia, Director - Capital Markets at CRISIL, said “Over half of diversified equity funds underperformed the S&P CNX 500 benchmark over three and five-year time frames. If you also consider that approximately 78 per cent of funds in ELSS failed to beat the benchmark over a five-year period, this highlights the difficulty in picking consistently successful stocks.”

     

    Simon Karaban, Director of S&P Indices, Asia Pacific Research, said “the scorecards across the US, Canada, and Australia have shown similar results to that of India. There is a striking resemblance to other well-established markets in the degree to which actively managed funds have underperformed over a five-year time horizon, particular in relation to domestic equities.”

     

    Benchmark indices also outperformed actively managed fixed income funds in the last one-year period, outpacing approximately 87 per cent of funds in the gilts category, despite the category exceeding benchmark performance over the 3-year period, S&P said.

     

    Percentage of funds outperformed by the benchmark

    Fund category

    Benchmark index

    1-year

    3-year

    5-year

    Large Cap

    S&P CNX NIFTY

    76.92

    57.14

    71.43

    Diversified

    S&P CNX 500 EQUITY

    36.43

    52.25

    50.94

    ELSS

    S&P CNX 500 EQUITY

    30.56

    51.72

    78.26

    Balanced

    CRISIL BalanCEX

    50

    62.5

    53.13

    MIP

    CRISIL MIPEX

    52.08

    53.06

    43.75

    Gilt

    CRISIL Gilt Index

    87.1

    45.16

    52.94

    Debt

    CRISIL CompBEX

    68.89

    41.86

    40

    what is medical abortion click mifeprex abortion pill
    Have a query or a doubt?
    Need a clarification or more information on an issue?
    Cafemutual welcomes all mutual fund and insurance related questions. So write in to us at newsdesk@cafemutual.com

    Click to clap
    Disclaimer: Cafemutual is an industry platform of mutual fund professionals. Our visitors are requested to maintain the decorum of the platform when expressing their thoughts and commenting on articles. Viewers are advised to refrain from making defamatory allegations against individuals. Those making abusive language or defamatory allegations will be blocked from accessing the web site.
    0 Comment
    Be the first to comment.
    Login or Sign up to post comments.
    More than 2,07,000 of your industry peers are staying on top of their game by receiving daily tips, ideas and articles on growth strategies. Join them and stay updated by subscribing to Cafemutual newsletters.

    Fill in the below details or write to newsdesk@cafemutual.com and subscribe to Cafemutual Newsletter now.