82%
of Indian Equity Large Cap funds underperformed their bench mark in five year
period ending December 2019
S&P Dow Jones Indices releases SPIVA®India year-end 2019
results
The latest
S&P Indices Versus Active (SPIVA®)India Scorecard
reveals that over the five-year period ending December 2019,82.29% of Indian Equity
Large Cap funds, 78.38%of the
ELSS funds, 40.91% of Indian Equity Mid/Small Cap funds underperformed their
respective indices.
Over the one-year period
ending December 2019, the S&P BSE 100 surged 10.92%, with 40% of the Indian
Equity Large-Cap funds underperforming the benchmark.
Mr. Akash Jain, Associate Director, Global Research & Design,
S&P Dow Jones Indices said: “Over longer horizons, majority of the actively
managed large-cap equity funds in India underperformed the S&P BSE 100 with
64.80% large-cap funds underperforming over the 10-year ending in December
2019. During this period the large-cap funds witnessed a low survivorship rate
of 68.80%”
Amongst all the categories evaluated in the SPIVA India
Scorecard, the Mid-/Small- category fared the best for active funds with
majority of them managing to beat the S&P BSE 400 Mid Small Cap Index across
different time horizons studied in the report. Though the survivorship rate was
low at 64.04% over the 10-year period.
The
asset-weighted return for large-cap equity funds was 36basis points higher than
the equal-weighted return over the 10-year period, and the return spread
between the first and the third quartile break points of the fund performance
was 2.99% for the same period. For the same period, in the Mid/ SmallCap
equity funds category, the asset-weighted fund return was 26 bps lower than the
equal-weighted fund return, and the return spread between the first and the
third quartile break points of the fund performance was 3.64%.
 |
| For Larger Image Click On It |
Over
the 10-year horizon, the return spread between asset-weighted and
equal-weighted returns was negative 43 bps for Indian ELSS funds. In the same
category, the return spread between the first and the third quartile break
points of the fund performance was 2.53%.
The SPIVA India Scorecard reports on the
performance of actively managed Indian mutual funds compared to their
respective benchmark indices over one-, three-, and five-year investment
horizons. With this edition of the scorecard, we have introduced style consistency
of funds and extended the study over the 10-year period ending December 2018.
It is not possible to invest directly in an index, and index returns do not
reflect expenses an investor would pay. For more information, please visit: www.spdji.com
About S&P DOW JONES INDICES
S&P Dow Jones Indices is the largest global
resource for essential index-based concepts, data and research, and home to
iconic financial market indicators, such as the S&P 500® and the
Dow Jones Industrial Average®. More assets are invested in products
based on our indices than products based on indices from any other provider in
the world. Since Charles Dow invented the first index in 1884, S&P DJI has
become home to over 1,000,000 indices across the spectrum of asset classes that
have helped define the way investors measure and trade the markets.
S&P Dow Jones Indices is a division of
S&P Global (NYSE: SPGI), which provides essential intelligence for
individuals, companies, and governments to make decisions with confidence. For
more information, visit www.spdji.com.
[1] The S&P BSE India Bond Index and the
S&P BSE India Government Bond Index were launched on Dec. 31, 2013. All
information for an index prior its Launch Date is back-tested, based on the
methodology in effect on the Launch Date. However, when creating back-tested
history for periods of market anomalies or other periods that do not reflect
the general current market environment, index methodology rules may be relaxed
to capture a large enough universe of securities to simulate the target market
the index is designed to measure or strategy the index is designed to capture.
For example, market capitalization and liquidity thresholds may be reduced.
Back-tested performance, which is hypothetical and not actual performance, is
subject to inherent limitations because it reflects application of an Index
methodology and selection of index constituents in hindsight. No theoretical
approach can take into account all of the factors in the markets in general and
the impact of decisions that might have been made during the actual operation
of an index. Actual returns may differ from, and be lower than, back-tested returns.
FOR MORE INFORMATION:
S&P Dow Jones
Indices
Marketing
& Communications
Bhavna
Sadarangani – +91 22 2272 5292
No comments:
Post a Comment