Markets

How have large-cap funds fared on rolling return basis?

Dhuraivel Gunasekaran | Updated on October 24, 2019

Recently, there has been a lot of concern over the underperformance of the actively managed large-cap funds as a category against their benchmarks on a trailing return (point-to-point) basis.

However, trailing returns alone are not sufficient to gauge the performance. Rolling return, which is arrived at by multiple point-to-point returns across different time periods, gives a more comprehensive picture and is a better metric to assess the performance of funds over the long run.

While rolling returns suggest that large-cap funds are putting up a good fight, the overall performance is still disappointing. The one-year rolling return analysis (from 10 years NAV history) reveals that out of 28 large cap funds, just  4 outperformed their benchmarks over 70% of the time.

Three-year and seven-year rolling returns also paint a sombre picture, with only 8 and 10 large cap funds respectively, outperforming benchmarks more than 70% of the time.

 

 

Published on October 23, 2019

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like