New Delhi, April 11, 2023: S&P Dow Jones Indices (“S&P DJI”), the world’s leading index provider, today published the S&P Indices Versus Active Funds (SPIVA) India Scorecard for 2022. Data shows that the majority of Indian Large-Cap Equity funds failed to beat the benchmark, with 88% of actively managed funds underperforming the S&P BSE 100 in 2022. In the same period, the benchmark for Indian Equity Mid-

/Small-Cap funds, the S&P BSE 400 MidSmallCap Index, rose 2% and 55% of active managers underperformed the index, while the S&P BSE 200 rose by almost 6% and 77% of Indian ELSS funds underperformed this index.

In the long run, the scorecard further noted that among all categories, Indian Equity Mid-/Small-Cap funds fared the best with 50% of them beating the S&P BSE 400 MidSmallCap Index over the 10-year period ending December 2022. Over the 10-year time horizon, more than 60% of funds underperformed in all categories outside of Indian Equity Mid-/Small-Cap. According to the report, the S&P BSE India Government Bond Index increased by almost 3% in 2022. Interestingly, less than one-third of active managers beat the benchmark in 2022, with an underperformance rate of 68%. Indian Composite Bond Funds fared the best in the same period, with only 45% underperforming the S&P BSE India Bond Index. Benedek Voros, Director, Index Investment Strategy, S&P Dow Jones Indices said, “Indian markets fared far better than most global markets in 2022; although main equity and fixed income benchmark indices dropped in H1, they staged a remarkable recovery in the second half of the year. Tightening lending standards weighed more heavily on smaller firms, with the S&P BSE 500 MidSmallCap Index underperforming the S&P BSE 200 by 4%, the most since 2019.”

The report also noted that Indian ELSS funds achieved the second-highest long-term survival rates across all categories in our SPIVA India Scorecard, with 77.8% of them still surviving after 10 years. Meanwhile, 76.9% of Indian ELSS funds underperformed the index. Over a 10-year period, some funds improved, with 63.9% underperforming the benchmark.