The latest research from Yale University and Indian scholars (2013–2024 data) on Indian equity mutual funds gives the below data :
- Average Outperformance / Alpha is close to zero.
- High fees in active funds continue to erode investor wealth in the long term.
The SPIVA India Scorecards published twice a year, show the below evidence as follows :
- Over 93% of large-cap active funds underperform over their respective index benchmark over a Nifty 100 over a 5-year.
- Even in mid-cap and small-cap categories, nearly 85% of active funds underperform their benchmark Index.
- The longer the time horizon, the fewer active funds both survive and outperform.
In other words, whether large-cap or small/mid-cap , passive investing always win !