Is the 1-year return of your large-cap equity fund looking inadequate, sitting at less than 10% since the start of April 2017? The benchmark returns are similar. The 1-year return for the large-cap benchmark Nifty 50 index was 10% till 23 March 2018 and 11.1% for S&P BSE Sensex. But of 52 large-cap equity funds as defined by Valueresearchonline.com, only 16 have outperformed their benchmark. Which means that the other 36 have delivered a return less than 10%.
Are large-cap fund managers losing their ability to generate alpha, the benchmark-plus return that they generate, which justifies their fees?
