60% equity schemes fail to beat benchmarks in three years on SIP investments

economictimes.indiatimes.com:

SIP, an analysis of performance by ETMutualFunds showed. ETMutualFunds considered the SIP performance (XIRR) of 195 equity schemes in the three-year horizon and compared their performance with their respective benchmarks. Around 117 equity schemes have failed to beat their respective benchmarks. We considered only regular, growth schemes for the study.

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The mid cap category had the highest number of underperformance. Around 19 schemes out of the total 24 schemes, underperformed their benchmarks. This shows 79% of underperformance. The flexi cap category had 71% of underperformance. Both focused fund and contra fund categories had 68% and 67% of underperformance respectively. Small cap category and value fund category had the lowest underperformance. Small cap category had 21 schemes, out of which only nine schemes underperformed their benchmarks. The value fund category had 14 schemes, out of which only five schemes underperformed against their benchmarks. Most categories were not able to beat their respective benchmarks in the three-year horizon. Despite offering better returns or double-digit returns, some schemes failed to outperform their benchmarks. We considered equity categories such as large cap, large & mid-cap, mid cap, small cap, flexi cap, focused, contra, value-oriented, and ELSS categories for the study. The three-year XIRR returns of the schemes were compared to their respective current benchmark performances during the same horizon. The SIP returns for the three-year horizon were calculated for the period July 31, 2020 to July 31, 2023. Note, we did not consider multi cap schemes because the data for