A recent ETMutualFunds analysis revealed that a majority of equity mutual fund schemes failed to beat their benchmarks in the five and seven-year horizons. We also found out that around 92% large cap mutual funds failed to beat their benchmark. Most mid cap schemes (74%) were also unable to outperform their benchmarks. However, most small cap schemes, considered one of the riskiest category, managed beat their benchmarks.
Only around 13% small cap schemes underperformed their benchmarks in the five-year horizon. Only around 14% schemes failed to beat their benchmarks in the seven-year horizon. Note, we are talking about the performance based on the trailing returns.
An analysis of trailing returns in the five years showed that only 2 out of 15 schemes underperformed their benchmarks. In the seven-year horizon, only 2 schemes out of 14 schemes fared poorly.
The rolling returns analysis showed that only 3 out of 15 schemes failed to beat their benchmark in the five-year horizon. In the seven-year horizon, out of 14 schemes, only one scheme underperformed.
The schemes of regular and growth options were taken for the analysis. We looked at each category’s trailing and rolling returns to analyse the performance. Here is the list of schemes in the small cap category that have underperformed their benchmarks over the five and seven-year horizon.
