ELSS, mid, small-cap funds outperform benchmark indices in 5 years

By: | Published: September 27, 2016 6:32 PM

Most of the equity linked savings schemes as well as mid and small-cap funds outperformed their respective benchmark indices over a five-year period ended June, latest data from SPIVA India scorecard shows.

bse-pti-LOver the same period, about 59 per cent of the large-cap equity funds underperformed benchmark S&P BSE 100 index. (Source: PTI)

Most of the equity linked savings schemes as well as mid and small-cap funds outperformed their respective benchmark indices over a five-year period ended June, latest data from SPIVA India scorecard shows.

Over the same period, about 59 per cent of the large-cap equity funds underperformed benchmark S&P BSE 100 index.

“As of June 2011, there were 116 large-cap equity funds available for investment. Out of these 116 funds, 37 funds got either merged or liquidated over the five year period ending June 2016, which led to a survivorship rate of 68 per cent,” Asia Index associate director (global research & design) Utkarsh Agrawal said.

“Another 31 funds underperformed the S&P BSE 100, which led to a total of 59 per cent of the funds underperforming the index,” he added.

As per the report, most of the equity-linked savings schemes (ELSS) and mid-cap/small-cap funds outperformed the S&P BSE 200 and the S&P BSE MidCap benchmark indices, respectively.

Agrawal noted that owing to the volatile nature of the mid-cap and small-cap segment of the Indian equity market, the return spread for the actively managed mid/small-cap equity funds was higher (at 4.11 per cent) than large-cap equity funds.

The report also showed that a large number of debt funds underperformed their respective indices over the five-year period ending June 2016.

SPIVA has been produced by Asia Index Private Ltd, an equal joint-venture between BSE and S&P Dow Jones Indices.

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