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Notwithstanding the buoyant market and record inflows, only 57 per cent or 159 open-ended equity diversified funds out of 281 have managed to beat their respective benchmark indices.
According to a PL Wealth Management, a subsidiary of Prabhudas Lilladher, large -cap was the worst performer with only 10 out of 32 schemes managed to beat their benchmarks and it was followed by 55 per cent or 23 out of 42 equity linked savings schemes returning more than the benchmark indices.
Multi-cap and Focused funds were the best performers with 75 per cent and 64 per cent or 18 each of the 24 and 28 schemes beat their respective benchmark.
It was a mixed for the most popular small and mid-cap segment with 15 out of 27 and 18 out of 24 schemes beating their respective index. Most of the small-cap funds restrictions on fund flow after the recent run-up in the market.
Of the 32 value-contra and dividend yield funds, only 18 have beaten the index.
Beating the index has become a major task for mutual funds as unlike equity-oriented schemes, the benchmark indices have no stock specific cap on weightage and specific limit on market-caps, said CEO of a leading fund house.
Moreover, mutual fund schemes have to maintain certain amount in cash for meeting redemptions, he added.
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