S&P Dow Jones Indices Announces SPIVA India Year-End 2021 Results
S&P Dow Jones Indices (“S&P DJI”), the world’s leading index provider, today released the S&P Indices vs. Active Funds (SPIVA®) India Scorecard Report. Over 82% of Indian Equity Large Cap funds underperformed their benchmark in the five-year period ending December 2021
According to the report, 50 per cent Indian equity surge cap funds have returned less than the S&P BSE 100 in the one-year period completed in December, 2021. Over the same period, 50 per cent Indian equity mid- / small-cap and 27 per cent Indian ELSS funds have returned less than their respective benchmarks.
This was a one-year market boom for most of 2021, with the S&P BSE 100 up 26 percent. Low returns are also seen for the long term, with 68 per cent of large-cap funds giving less than their benchmark over the 10-year period completed in December, 2021.
In ELSS, meanwhile, active funds and mid- / small-cap categories have outperformed their benchmarks in terms of returns. About 39 per cent of active ELSS and 37 per cent of active mid- / small-cap funds returned less than their respective benchmarks in the six-month period ended December, 2021, the report said.
Akash Jain, Associate Director, Global Research and Design, S&P Dow Jones Indices, said,
The benchmark S&P BSE 400 Midsmolcap Index for this category was up 51 per cent during the same period. In this category of active funds, market participants may see more fluctuations in fund returns, as the difference between the first and quarterly quarterly funds was 19 per cent, thus presenting the fund selection challenges. ”
The S&P BSE India Government Bond Index and the S&P BSE India Bond Index increased by 3% and 4% respectively during the one year period ended December, 2021. In the long run, most active funds in the bond category have returned lower than the respective benchmark.