70-80% active large-cap MF schemes underperform benchmarks in 2022

2022 INERTIA: Weak returns from minority allocation in small- and mid-caps, limited Adani exposure

Most active large-cap mutual fund (MF) schemes underperformed their benchmarks in 2022 owing to a range of reasons — from underperformance of their minority allocations in mid- and small-caps to limited-to-nil exposure in Adani Group stocks which were among the top performers in large-cap benchmarks last year, observed investment advisors and analysts.

An analysis of Value Research data shows that 83 per cent of active large-cap funds underperformed the S&P BSE 100 Total Returns Index (TRI) and 69 per cent failed to beat the Nifty 100 TRI. The two large-cap indices went up 6 per cent and 5 per cent,