Every mutual fund scheme has a benchmark and it is the endeavour of the fund manager to not only beat it in terms of returns but also out-perform in the long run. However, many funds especially in the large cap category have failed to outperform its benchmark or the market over the long duration.
“According to data published by S&P in their most recent SPIVA India Scorecard, for the 10-year period ended December 2021, about 67% of the large cap equity mutual funds underperformed the S&P BSE 100 Index. This would indicate that in the long-term, large-cap funds may have found it slightly challenging to deliver market beating returns” Sankaranarayanan Krishnan, Quant Fund Manager (PMS & AIF schemes, Passive Funds) Motilal Oswal Asset Management Company Ltd.
