Majority of equity, composite bond funds underperformed indices: Report

Nearly half of large-cap funds, over half of equity linked saving schemes (ELSS) and over three-fourths of composite bond funds have underperformed their respective indices in the year to June 2020, a report said on Thursday.
The latest S&P Indices Versus Active (SPIVA) compared the performance of actively managed Indian mutual funds with their respective benchmark indices over one, three, five and ten-year investment horizons.
The study found that for the one-year period ending June 2020, 48.39 per cent of Indian equity large-cap funds, 59.52 per cent of the ELSS funds and 82.31 per cent of Indian composite bond funds underperformed their respective indices, as per a statement.
The story is similar over a longer term horizon as well, it said, adding 67.67 per cent of large-cap funds underperformed the large-cap benchmark over the 10-year period ending in June 2020.
During this period, the large-cap funds witnessed a low survivorship rate of 65.41 per cent, it added.
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