The scenario was no different even in mid-cap and small-cap schemes of mutual funds, which saw 57.1 per cent schemes lag behind movement in the respective benchmarks, S&P Index Versus Active (SPIVA) said in its half-yearly report.
Markets have seen unprecedented gains since April 2020, the pandemic has created easing liquidity conditions around the world, and concerns have been raised about financial market enthusiasm detracting from actual economic activity on the ground.
The report noted that over a long period of time most of the actively managed funds in India underperformed their respective benchmarks.
In the five-year period ending June 2021, 82.7 per cent of large-cap, 76.2 per cent of small/mid-cap and 69.6 per cent of equity-linked savings schemes outperformed their respective benchmarks.
In addition, 71.4 per cent of Government of India Bonds and 97.9 per cent of Indian Composite Bond Fund underperformed their respective benchmarks in the five-year period ending June 2021.