InvestorQ : How have the large cap mutual funds performed in 2020? Did they managed to beat the Nifty during the year?
Neelam Naik made post

How have the large cap mutual funds performed in 2020? Did they managed to beat the Nifty during the year?

Answer
image
Anu Biswas answered.
4 weeks ago
Follow

If 2018 and 2019 were bad for Mutual fund managers, then 2020 was not too great either. According to a recent study, nearly 81% of Indian large-cap funds underperformed the benchmark indices in 2020 on TRI basis. The position was relatively better for ELSS and mid-caps where the underperformance was 65%, but that is still not a glorious story to tell.

One reason is Kurtosis since the 10% restriction on holding meant that large cap funds could not participate in the index winners to the best extent possible. In terms of returns, the large cap funds lagged benchmarks by 217 bps. Even if you take a longer term perspective of 10-years, it was observed that 68% of large cap funds did worse than the index.

0 Views