These 51 schemes were from ELSS, flexi cap, focused fund, large & mid cap, large cap, mid cap, and value fund categories. Around 12 mid cap schemes underperformed their benchmarks in three, five, seven, and 10 year horizons. Around 10 ELSS funds and large cap funds, eight large & mid cap, five flexi cap and focused funds, and one value fund underperformed their benchmarks in all these horizons. No small cap fund and contra fund underperformed their respective benchmarks in all these horizons.
We included only those equity schemes that have underperformed their benchmarks in all four horizons. Some schemes might have underperformed their respective benchmarks in any one, two, or three horizons but not all four chosen horizons.
We considered equity categories such as large cap, mid cap, large & mid cap, small cap, ELSS, flexi cap, focused fund, value & contra fund for the study. We looked at the trailing returns for comparison. We compared the performance of the schemes with their current benchmarks. We considered regular and growth option schemes. We did not consider multi cap schemes because the data for benchmarks was not available for comparison.
Note, the above exercise is not a recommendation. The main purpose of the exercise was to find out how many equity schemes have underperformed their respective benchmarks in the three, five, seven, and 10-year horizons.
One should not make investment or redemption decisions based on the above exercise. Past performance does not guarantee future performance. One should always include risk appetite, investment horizon, and goal before making any investment.
If you are looking for recommendations, see:
Best recommended schemes to invest in 2023
