SPIVA (S&P Index vs Active) published the Year-End report for 2019 this week. SPIVA studies the outperformance of active managers vs benchmark Indices all over the world. Their India report includes a 10-year comparison of Index Vs Active funds in the Indian Mutual Fund landscape.
The scorecard reveals that over a five year period, 82.29% of Indian Equity Large-Cap funds, 78.38% of Indian ELSS Funds and 40.91% of Indian Mid-/Small-Cap Equity funds underperformed their respective benchmarks. The report shows that over the one year period ending December 2019, 40% of Indian Equity Large-Cap Funds and 70.73% of Indian ELSS Funds underperformed compared to their respective benchmarks. On the other hand, 72.09% of Indian Mid-/Small-Cap Equity funds overperformed the benchmark over the one year period ending 31 December 2019.
Inflows into Equity funds touched a one-year high in March, despite market volatility. Mutual fund industry witnessed inflows of Rs 11,485 crore in equity schemes for the month of March, up 7.04% from February where the inflows stood at Rs 10,730 crore. Equity Inflows were mainly supported by inflows into large-cap and multi-cap which saw inflows of Rs 2061 and Rs 2268 crore respectively. The assets under management (AUM) of the mutual fund industry dropped by 18% to Rs 22.26 lakh crore in March from Rs 27.23 lakh crore in the previous month.
SIP inflows reached a record high at Rs 8,641 crore in March, a rise of 7.3% from the same month last year. The total number of SIP folios in March jumped by 2.47 lakh to 3.12 crore. The total SIP contribution in the FY 19-20 rose to Rs 100,084 crore as compared with Rs 92,693 crore in 2018-19. AMFI data indicates that mutual funds added an average of 9.55 lakh SIPs per month during the financial year, with an average ticket size of Rs 2,800.
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Movers & Shakers
1/ Mutual Fund houses have reopened lumpsum investments in certain small cap funds including DSP Small Cap Fund, SBI Small Cap Fund,and Nippon India Small Cap Fund.
2/ SEBI has temporarily revised the cut-off timings for mutual fund transactions between 7 April to 17 April. Refer the revised cut-off timings for mutual fund transactions on Kuvera here and here.
Quote of the week:
For the strength of the Pack is the Wolf, and the strength of the Wolf is the Pack.
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