Large-cap equity, debt funds underperform in last 5 years

New Delhi: Majority of Indian large-cap equity and debt funds have underperformed their respective benchmark indices over a five-year period ended June 30, 2015, shows data from the SPIVA India scorecard.

However, most of the equity mid/small-cap and equity-linked saving schemes outperformed their respective benchmarks over the same period, the S&P Indices Versus Active Funds (SPIVA) scorecard, which tracks performance of actively managed mutual funds against their benchmarks said.

As per the report, 28 percent of funds in the large-cap index underperformed the S&P BSE 100 over the one-year period.

For the three and five year period, 50 percent and 60 percent funds underperformed, respectively.

S&P BSE 100 gave a return of 10.86 percent for one year period, 18.78 percent for three year and 10.71 percent for five-year period.

In comparison, Indian equity large-cap funds gave a return of 15.51 percent, 19.71 percent and 10.79 percent for one, three and five year periods, respectively.

"The Indian capital market remained volatile through mid-year 2015. The actively managed debt funds fared worse in comparison to the actively managed equity funds, with a majority of the debt funds lagging behind the benchmark over one, three and five year periods ended June 30," Asia Index Senior Analyst Utkarsh Agrawal said.

In comparison to the large-cap index, only 43 percent Indian equity mid/small cap funds underperformed its benchmark index S&P BSE mid cap in five-year period, the report said.

However, only about 22.22 percent equity-linked saving schemes underperformed against its benchmark S&P BSE 200.

In the said period, S&P BSE 200 gave a return of 10.87 percent, while ELSS funds gave a return of 13.29 percent.

Further, S&P BSE mid cap gave a return of 9.96 percent while mid/small-cap funds offered a return of 16.05 percent during the period under review.