S&P Dow Jones cap Indices recently released the S&P Indices Versus Active Funds (SPIVA) India dashboard for the year ending December 2023. Over a five-year horizon, 85.7% of large-cap funds have failed to beat their benchmarks. This figure was lower at 58.1 percent for the mid and small cap category.
Key takeaways
Active funds have difficulty beating their benchmark indices, particularly over longer horizons. “It is wrong to think that by simply investing in active funds you will be able to benefit from alpha. Don’t ignore passive funds just because they offer returns similar to their benchmark,” says Siddharth Srivastava, Head of ETF (Exchange Traded Fund) Products.
First publication: April 3, 2024 | 8:42 p.m. STI