While the S&P BSE 100 index surged 37.92% in the five years ending December 2019, the story for Indian equity large cap funds has not been the same. According to a S&P Indices Versus Active (SPIVA) scorecard, 82.29% of the large cap equity funds have under-performed the index in the same time period. In the calendar year 2019, when the S&P BSE 100 surged almost 11%, two-fifths (40%) of the large-cap equity funds failed to mirror the trend and fell short of the jump registered by the index.
The trend could also be seen among equity linked savings schemes (ELSS), government bonds as well as composite bonds. While 78.38% of the Indian ELSS funds underperformed the S&P BSE 200 in the five year ending December 2019, the number was as high as 88.37% when analysed over a three year period. The S&P BSE India Government Bond Index, having given healthy returns to investors over the 5 year period ending December 2019, saw 84.91% of the funds underperform it. The number goes higher if S&P BSE Bond Index is compared with composite bonds in India, with 97.78% of the funds underperforming the index.
Nifty50 closed lower at 8748.75 level, -43.45 points, or -0.49 per cent. Nifty Support : 8600 and 8500 Resistance : 8850 and 8900.
