Large index funds continued to underperform in the first half of 2023 with 58 per cent large cap funds failing to beat their underlying indices and the overall underperformance being as high as 85.2 per cent.
According to S&P Dow Jones Indices — a leading index provider globally — the underperformance rates for the domestic equity and bond mutual funds have been elevated over the past three- and five-year periods.
Based on the varying performance of active managers across different fund categories, most equity large-cap funds failed to beat their benchmarks, with 58 per cent of actively managed funds underperformed on the S&P BSE 100 in the first half of 2023.
In the fixed income fund category, while the BSE India government bond index rose 4.7 per cent in the first six months, fewer than one-sixth of active bond fund managers beat the benchmark during the period, with an underperformance rate of 85.2 per cent.
But fewer funds performed badly as tenure, with underperformance
| Subscribe To Our Free Newsletter |
