The performance of active mutual funds seems to have an inverse relationship with market returns as the chances of outperformance increases during periods of lower market returns, shows an analysis done by Kotak Institutional Equities.
"A comparison of the outperformance of large-cap funds shows that more funds and a higher share of AUM tend to outperform during periods of lower market returns. Logically, this finding seems quite plausible," the report said.
