48% active largecap mutual funds outperformed in 2023: SPIVA report

The active largecap mutual fund (MF) schemes showed an improved performance in calendar year 2023 compared to their longer-term track record, according to the S&P Indices Versus Active Funds (SPIVA) report.
 

In 2023, 48 per cent of the active largecap funds outperformed the S&P BSE 100. In the 3-year and 5-year time frame, the share of outperforming schemes stood at just 12.5 per cent and 14.3 per cent, respectively.

The equity-linked savings scheme (ELSS) were the best performers among all the categories as 70 per cent of the schemes managed to outperform the S&P BSE 200, the study shows.
 

 

Midcap and smallcap schemes, which are generally the better performers among all categories, emerged as the laggards. Only 26 per cent of the midcap and smallcap schemes managed to deliver better returns than the S&P BSE 400 MidSmallCap Index in 2023.
 

Reports have recently highlighted that the performance of active midcap and smallcap schemes took a hit in the post-March 2023 rally as the index were largely driven by low quality stocks and active funds were underweight on them.

The other factor is the underperformance of largecap stocks vis-a-vis midcap and smallcap stocks. While the smallcap and midcap indices comprise completely of smallcap and midcap stocks, the active funds have significant allocation in largecap stocks.