Recent performance of equity schemes across different time periods, fund categories and fund houses paint a mixed picture.
Multi-caps have fared well against benchmarks Mid-caps, however, have fared poorly relative to benchmark. Numberspeak: 49% of large-cap funds have outperformed benchmark in past year.
Numberspeak: 40% of assets under management in large-cap funds have beaten the benchmark in past year.
1) Mid-cap funds have fared poorly relative to common benchmark over past 1 and 3 years. 2) % of AUM in multi-cap funds outperforming benchmark over past 1 and 3 years is less compared to number of schemes outperforming. This implies some of the larger multicap funds have failed to outperform. 3) % of AUM in large-cap funds outperforming benchmark is much higher over past 5 years compared to number of schemes outperforming. This means some of the bigger large-cap funds have fared better. 4) Small-cap funds boast 100% outperformance relative to benchmark over past 5 years in terms of volume and value.
Some fund houses have a blemish-free track record They have posted healthy returns from most schemes over the long-term. Select schemes have been consistent outperformers Most of the outperformers are in the multi-cap space. These schemes have beaten the common benchmark for each of the past 5 years. Well-performing schemes have beaten index by high margins Select schemes have clocked very high alpha (outperformance over index) over the past five years. These schemes have generated highest outperformance relative to common benchmark over past 5 years.
Alpha is coming down Alpha is the returns over and above the benchmark. This has reduced. Mid-cap funds have particularly suffered over the past 3 years. ^Alpha relative to common benchmark
NOTE: Common benchmark for large-cap funds is BSE100, mid-cap funds is BSE Midcap, multi-cap funds is BSE500 & small-cap funds is BSE Smallcap Source: Value Research Data as on 31 December 2017
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