When the markets are down, fund managers can't possibly give you positive returns. But, if they manage to contain the downside risk - net asset values of funds declining less than the benchmark index - then they have done a good job.
Most mutual fund managers across categories have managed to contain the downside risk in the current bear market. From the peak of January 29, 2015, to the trough of January 22, 2016, the Sensex dropped 19.27 per cent. In all equity fund categories, most funds have declined less than their respective benchmarks over this period.
We also ran the numbers to see how the top 10 funds by assets under management (AUM) have fared. Here, too, the results are satisfying. Barring two funds, the other eight have managed to beat their benchmarks in the current bear market. In 2008, only one fund had underperformed by a margin of 90 basis points. But there are two caveats.
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