Despite market rally, large-cap funds are struggling to generate alpha

26 of 35 such schemes failed to beat Sensex over past year

Topics
large-cap funds | stock market rally | stock market trading

Chirag Madia  |  Mumbai 

A majority of large-cap-focused equity mutual fund (MF) schemes have underperformed the benchmark Sensex over the past year despite the record-setting market rally. Of 35 such schemes, only 9 have managed to generate alpha — a term used to describe a fund manager’s ability to beat the market.

So, what weighed on the performance of large-cap funds? The underperformance of the financial pack. Traditionally, most schemes in the large-cap space have been overweight on financial stocks. The BSE Finance has severely unperformed the Sensex with returns of just 11.2 per cent in the ...

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First Published: Wed, February 24 2021. 00:35 IST
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