Most of top equity schemes underperform in latest market correction

Most top equity schemes-with assets in excess of Rs 100 billion-have underperformed their respective benchmarks in the past month.

At a time when the benchmark Sensex and Nifty indices have fallen by 5 per cent, the average return for 14 such large schemes has been a negative 6 per cent. Most of these schemes have high exposure to the banking sector, under stress since the Punjab National Bank (PNB) came to light.

The sharp slide in stocks of public sector banks (PSBs) has put fund managers in a fix. The Nifty PSU Bank index has dropped by a little over 10 per