Is there any data on the number of Indian mutual that have beaten their respective benchmarks? I remember reading somewhere that in the US, over 80% of all domestic mutual funds underperformed their benchmarks on a 10 year time frame.
S&P publishes the Indices Versus Active Funds (SPIVA) report twice a year. Here’s the data from the latest report.
|Report 1: Percentage of Funds Outperformed by the Index|
|FUND CATEGORY||COMPARISON INDEX||ONE-YEAR (%)||THREE-YEAR (%)||FIVE-YEAR (%)||TEN-YEAR (%)|
|Indian Equity Large-Cap||S&P BSE 100||87.88||78.35||48.08||62.77|
|Indian ELSS||S&P BSE 200||83.72||61.54||27.78||43.33|
|Indian Equity Mid-/Small-Cap||S&P BSE 400 MidSmallCap Index||62.22||78.26||53.03||50.67|
|Indian Government Bond||S&P BSE India Government Bond Index||82.93||75.47||82.35||94.92|
|Indian Composite Bond||S&P BSE India Bond Index||30.00||60.42||68.70||95.45|
On a 10 year timeframe:
- 62.7% of large-cap funds underperformed the index.
- 43.3% of ELSS funds underperformed the index.
- 94% of govt bond funds underperformed their index.
- 95.5 % composite bonds funds underperformed the index. Composite funds hold a mix of govt and corporate bonds.
Although the 1-year number looks pretty grim for equity funds, it is too short a time-frame to measure any performance.