Half of all large-cap funds underperform index on one-year returns

Underperformance of active funds could further spur growth in ETFs

One out of every two Indian equity large-cap funds underperformed the S&P BSE 100 in the one-year period ending December 2021, according to the S&P Indices Versus Active Funds (SPIVA) India Scorecard. The S&P BSE 100 gained 26 per cent last year.

In the same period, 50 per cent of Indian Equity mid-/small-cap, and 27 per cent of Indian ELSS funds underperformed their respective benchmarks. In the debt category, 79 per cent of Indian Government Bond and 62 per cent of Indian Composite Bond funds lagged the benchmarks respectively.

For the six months ending December 2021, 54 per cent of