homepersonal finance NewsOver half of equity large cap funds underperformed their benchmark in 2023: Report

Over half of equity large-cap funds underperformed their benchmark in 2023: Report

The report further noted that the benchmark for Indian equity mid-/small-cap funds, the S&P BSE 400 MidSmallCap Index, rose 44% in 2023, and 74% of active managers underperformed this index over that period.

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By CNBCTV18.com Mar 28, 2024 5:39:53 PM IST (Updated)

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Over half of equity large-cap funds underperformed their benchmark in 2023: Report
Over half of Indian equity large-cap funds failed to beat the benchmark, with 52% of actively managed funds underperforming the S&P BSE 100, according to S&P Indices Versus Active Funds India Scorecard for the year ending December 2023.

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The past year saw differing performance among active fund managers across categories, the report said.
Just 30% of Indian equity linked savings scheme (ELSS) funds underperformed their benchmark. The S&P BSE 200 and is the only category where the majority of funds outperformed the relevant benchmark last year.
The SPIVA Year-End 2023 report further noted that the benchmark for Indian equity mid-/small-cap funds, the S&P BSE 400 MidSmallCap Index, rose 44% in 2023, and 74% of active managers underperformed this index over that period.
This funds category also fared the worst in the long run, with 75% of them lagging the S&P BSE 400 MidSmallCap Index over the 10-year period ending December 2023.
According to the report, the S&P BSE India Government Bond Index increased by 7.9% in 2023 and less than a fifth of active managers beat the benchmark in this category in 2023, bringing the underperformance rate to 82%.
Similarly, the S&P BSE India Bond Index rose 8.0%, while the underperformance of Indian Composite Bond fund managers was the highest across all categories in the SPIVA India Scorecard, at 96%.
The report also took into account the global market conditions and how India stood amidst other markets.
The SPIVA Year-end 2023 finds India among the leaders of the global stock market rally with all observed equity benchmarks posting gains of over 20% for the year.
Indian bond markets also had a strong year, with annual returns in the high single digits (8.0%).

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