Large schemes struggle to generate alpha; returns lag over 1-3 yr period

The country’s largest actively-managed equity funds have struggled to generate alpha in the last one year and three-year period. Market participants said most of the large schemes had a ‘growth’ tilt at a time when the ‘value’ theme outperformed the market over the past one year.

Data from Value Research shows that Kotak Flexicap Fund, which is the largest pure equity scheme with an asset of Rs 34,744 crore, has given returns of 55.83 per cent and 10.52 per cent in the last one year and three years, respectively. Several large schemes such as Aditya Birla Sun Life Frontline Equity