Gap between benchmark, equity fund returns shrinks4 min read 03 Apr 2018, 06:45 PM IST
Equity schemes have to now show performance against the total return index of their benchmark, which is harder to beat. Even before this change, funds were struggling to beat benchmark returns
Is the 1-year return of your large-cap equity fund looking inadequate, sitting at less than 10% since the start of April 2017? The benchmark returns are similar. The 1-year return for the large-cap benchmark Nifty 50 index was 10% till 23 March 2018 and 11.1% for S&P BSE Sensex. But of 52 large-cap equity funds as defined by Valueresearchonline.com, only 16 have outperformed their benchmark. Which means that the other 36 have delivered a return less than 10%.
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