Union AMC’s research report ‘R Active Funds Relevant in Indian Market’ shows that on a rolling return basis, an average of 52.85 per cent in one year, 57.49 per cent in three years and 62.24 per cent in five years have done better than their respective schemes. has performed. Try Here is the benchmark data:
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Data- Union AMC;
The database considered for our evaluation is from 31 May 2011 (as of 30 September 2021).
The report emphasizes the fact that the prevailing “single debt” performance analysis indicates that many active funds do not outperform their benchmarks. This type of analysis does not give complete and reliable insight into portfolio performance. The annual point to point return calculation method neglects the performance of plans throughout the year and is easily biased by unusual events. Rolling return analysis eliminates these biases and provides more reliable insight into the evaluation of a fund’s performance.
As per the rolling return analysis, except for the large cap category, most of the schemes have outperformed their benchmarks over a period of 1, 3 and 5 years. The range of better performance of the category is greater over a longer period of time.
The large cap mutual fund category has been in controversy for the last two years. idle money Have comfortably beat your active peers in the category. Even rolling return data shows that only 43.63% of active large cap fund We were able to beat our benchmark in the last one year. However, the scope of outperformance is not that big.
The report shows that most small cap funds And able to beat TRI benchmark followed by mid cap schemes. This suggests that there is a huge room for alpha formation in these two categories.