Active funds face mixed performance; Dow Jones indices publishes SPIVA India scorecard 2023
Oct 25, 2023
Mumbai (Maharashtra) [India], October 25 : Dow Jones Indices, the world's leading index provider, has unveiled the results of its S&P Indices versus Active Funds (SPIVA) India Scorecard for the first half of 2023, offering insights into the performance of active fund managers in India across various fund categories.
In a notable trend, the SPIVA Scorecard revealed that a significant portion of Indian Equity Large-Cap funds struggled to outperform their benchmarks, with a staggering 58 per cent of actively managed funds falling short of the S&P Bombay Stock Exchange (BSE) 100 benchmark.
Indian Equity Mid-/Small-Cap funds demonstrated resilience, with only 38.1 per cent of these funds failing to meet the S&P BSE 400 MidSmallCap Index's performance over a 5-year period.
The S&P BSE India Bond Index showed a healthy growth of 4.6 per cent in the first half of 2023.
Indian Composite Bond fund managers faced the highest underperformance rates across all categories, with a startling 95.7 per cent failing to match the benchmark.
Within the fixed-income fund category, the S&P BSE India Government Bond Index increased by 4.7 per cent in the first half of 2023.
Regrettably, less than one-sixth of active bond fund managers managed to surpass the benchmark, resulting in an underperformance rate of 85.2 per cent.
The S&P BSE 400 MidSmallCap Index witnessed a substantial growth of 12.4 per cent during the first half of 2023.
However, 45.3 per cent of active managers underperformed this index during the same period.
A concerning trend emerged within the Indian Composite Bond (ICB) fund category, with the lowest survival rates across 1, 3 and 5-year horizons. Approximately one-fifth of funds within this category were either closed or merged over the past 5 years.
The SPIVA India Scorecard paints a complex picture of the performance of active funds in the Indian market.
As investors navigate these trends, they will need to carefully consider their investment strategies and options, recognizing the varying performance of active managers across different fund categories.
The results of this Scorecard serve as a valuable resource for both investors and financial professionals looking to make informed decisions in the dynamic Indian investment landscape.
