Active large-cap funds outperform benchmarks on back of broad rally

Delivering higher returns than passive funds on the back of broad-based rally in Indian equity markets

Actively managed large-cap funds have started delivering higher returns in the past one year, against passive funds. On average, large-cap funds have given returns of 28.27 per cent, against 22.17 per cent returns generated by the S&P BSE Sensex in the past year.

Market participants say the outperformance is largely due to a broad-based rally in Indian equities in the past few months. Several active large-cap funds have managed to give returns in the range of 35-45 per cent in one year, reveals the data from Value Research.

G Pradeepkumar, chief executive officer, Union Asset Management Company, says, “Underperformance of