In a report related to equity-linked saving schemes released on Thursday, it is stated that majority of large-cap funds, over half of the equity-linked saving schemes (ELSS) and over three-fourths of composite bond funds have under-performed their respective indices in the year to June 2020. The latest Standard and Poor (S&P) Indices in comparison to Active (SPIVA) the performance of actively managed Indian mutual funds (MF) with their respective benchmark indices over one, three, five and ten-year investment verticals. The study found that for the one-year period ending June 2020, 48.39 percent of Indian equity large-cap funds, 59.52 percent of the equity linked saving scheme funds and 82.31 percent of Indian composite bond funds underperformed their respective indices.
The story is in line with over a longer-term horizon as well, according to release, adding 67.67 percent of large-cap funds underperformed the large-cap benchmark over the ten year period ending in June 2020. During this period, the large-cap funds witnessed a low down survivorship rate of 65.41 percent.
In the first half of the calendar year 2020, over 40-percent of funds in each of the equity segments under-performed their respective category benchmarks, while 37.50 percent of the Indian government bond funds and 92.16 percent of the Indian composite bond funds under-performed their respective benchmarks, Standard and Poor (S&P) Dow Jones Indices, as per the statement of Associate Director Akash Jain.
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