New Delhi : S&P Dow Jones Indices (“S&P DJI”), the world’s leading index provider, today published the S&P Indices Versus Active Funds (SPIVA) India Scorecard for 2022. Data shows that the majority of Indian Large-Cap Equity funds failed to beat the benchmark, with 88% of actively managed funds underperforming the S&P BSE 100 in 2022. In the same period, the benchmark for Indian Equity Mid-

/Small-Cap funds, the S&P BSE 400 MidSmallCap Index, rose 2% and 55% of active managers underperformed the index, while the S&P BSE 200 rose by almost 6% and 77% of Indian ELSS funds underperformed this index.

In the long run, the scorecard further noted that among all categories, Indian Equity Mid-/Small-Cap funds fared the best with 50% of them beating the S&P BSE 400 MidSmallCap Index over the 10-year period ending December 2022. Over the 10-year time horizon, more than 60% of funds underperformed in all categories outside of Indian Equity Mid-/Small-Cap. According to the report, the S&P BSE India Government Bond Index increased by almost 3% in 2022. Interestingly, less than one-third of active managers beat the benchmark in 2022, with an underperformance rate of 68%. Indian Composite Bond Funds fared the best in the same period, with only 45% underperforming the S&P BSE India Bond Index. Benedek Voros, Director, Index Investment Strategy, S&P Dow Jones Indices said, “Indian markets fared far better than most global markets in 2022; although main equity and fixed income benchmark indices dropped in H1, they staged a remarkable recovery in the second half of the year. Tightening lending standards weighed more heavily on smaller firms, with the S&P BSE 500 MidSmallCap Index underperforming the S&P BSE 200 by 4%, the most since 2019.”

The report also noted that Indian ELSS funds achieved the second-highest long-term survival rates across all categories in our SPIVA India Scorecard, with 77.8% of them still surviving after 10 years. Meanwhile, 76.9% of Indian ELSS funds underperformed the index. Over a 10-year period, some funds improved, with 63.9% underperforming the benchmark.

Report 1a: Percentage of Funds Outperformed by the Index (Based on Absolute Return)

Source: S&P Dow Jones Indices LLC, Morningstar, and Association of Mutual Funds in India. Data as of Dec. 31, 2022. Returns are shown in INR. Past performance is no guarantee of future results. Table is provided for illustrative purposes.