Actively managed large-cap mutual funds are no longer able to give market-beating returns; here's why

It was a good 30-40 year run, but it’s over now. I’m talking about actively managed large-cap equity diversified funds in India. For a long time, this was the go-to category of funds to serve as the core holding of any mutual fund portfolio. Many of the funds had long track records and the companies they invested in were also well understood. Those days are now gone, probably forever. Actively managed largecap funds are no longer able to keep up with the Sensex and the Nifty even in a minimally sustained manner. In a recent study by the Value Research team, we looked at 25 actively managed largecap funds with a long history and compared these to the five-year rolling returns of the Sensex TRI index.

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