Around 92% passive or index-based large cap mutual funds failed to beat their respective benchmarks in 2023, an analysis of performance of large cap index funds showed. There were around 52 passive large cap schemes and 48 schemes failed to beat their respective benchmarks. In other words, only four large cap index funds managed to beat their respective benchmarks in the last year.
We considered the passive large cap schemes benchmarked against NIFTY 50 – TRI, Nifty50 Value 20 – TRI, NIFTY50 Equal Weight – TRI, Nifty100 Low Volatility 30 – TRI, Nifty100 Equal Weight – TRI, S&P BSE SENSEX – TRI, NIFTY 100 – TRI, and NIFTY NEXT 50 – TRI. These benchmarks gave 21.30%, 29.79%, 31.04%, 31.87%, 30.68%, 20.33%, 21.24%, and 27.24% respectively. We considered the regular and growth options.
Passive large cap schemes: Outperformers in 2023
Scheme
Scheme returns
Benchmark returns
Motilal Oswal S&P BSE Enhanced Value Index Fund
59.31%
21.30%
Motilal Oswal S&P BSE Quality Index Fund
32.44%
21.30%
UTI S&P BSE Low Volatility Index Fund
29.36%
21.30%
Motilal Oswal S&P BSE Low Volatility Index Fund
28.88%
21.30%
Source: ACE MF, Trailing returns as on January 15, 2024
Passive large cap schemes: Underperformers in 2023
Scheme
Scheme returns
Benchmark returns
DSP Nifty 50 Equal Weight Index Fund
29.76%
31.04%
Bandhan Nifty100 Low Volatility 30 Index Fund
29.64%
31.87%
HDFC NIFTY50 Equal Weight Index Fund
29.62%
31.04%
Aditya Birla Sun Life Nifty 50 Equal Weight Index Fund
29.50%
31.04%
ICICI Prudential Nifty50 Equal Weight Index Fund
29.37%
31.04%
HDFC NIFTY 100 Equal Weight Index Fund
29.11%
30.68%
Sundaram Nifty 100 Equal Weight Fund
29.01%
30.68%
Nippon India Nifty 50 Value 20 Index Fund
28.53%
29.79%
DSP NIFTY Next 50 Index Fund
26.68%
27.24%
ICICI Prudential Nifty Next 50 Index Fund
26.33%
27.24%
SBI Nifty Next 50 Index Fund
26.23%
27.24%
UTI Nifty Next 50 Index Fund
26.21%
27.24%
HSBC Nifty Next 50 Index Fund
26.13%
27.24%
Motilal Oswal Nifty Next 50 Index Fund
26.11%
27.24%
HDFC NIFTY Next 50 Index Fund
26.09%
27.24%
Kotak Nifty Next 50 Index Fund
26.07%
27.24%
Navi Nifty Next 50 Index Fund
26.03%
27.24%
Axis Nifty Next 50 Index Fund
25.86%
27.24%
Aditya Birla Sun Life Nifty Next 50 Index Fund
25.78%
27.24%
Edelweiss Nifty Next 50 Index Fund
25.78%
27.24%
LIC MF Nifty Next 50 Index Fund
25.73%
27.24%
UTI Nifty 50 Index Fund
20.89%
21.30%
Navi Nifty 50 Index Fund
20.83%
21.30%
DSP NIFTY 50 Index Fund
20.79%
21.30%
HDFC Index Fund-NIFTY 50 Plan
20.78%
21.30%
HSBC Nifty 50 Index Fund
20.78%
21.30%
Axis Nifty 50 Index Fund
20.74%
21.30%
ICICI Prudential Nifty 50 Index Fund
20.73%
21.30%
SBI Nifty Index Fund
20.65%
21.30%
Motilal Oswal Nifty 50 Index Fund
20.61%
21.30%
Aditya Birla Sun Life Nifty 50 Index Fund
20.59%
21.30%
Nippon India Index Fund-Nifty 50 Plan
20.53%
21.30%
Bandhan Nifty 50 Index Fund
20.52%
21.30%
Kotak Nifty 50 Index Fund
20.52%
21.30%
Tata NIFTY 50 Index Fund
20.51%
21.30%
Bandhan Nifty 100 Index Fund
20.49%
21.24%
Edelweiss Nifty 50 Index Fund
20.41%
21.30%
Franklin India NSE Nifty 50 Index Fund
20.25%
21.30%
HDFC NIFTY 100 Index Fund
20.08%
21.24%
Axis Nifty 100 Index Fund
19.96%
21.24%
UTI S&P BSE Sensex Index Fund
19.83%
20.33%
LIC MF Nifty 50 Index Fund
19.83%
21.30%
HDFC Index Fund-S&P BSE Sensex
19.81%
20.33%
ICICI Prudential S&P BSE Sensex Index Fund
19.77%
20.33%
Tata S&P BSE Sensex Index Fund
19.50%
20.33%
Nippon India Index Fund-S&P BSE Sensex Plan
19.45%
20.33%
Taurus Nifty 50 Index Fund
19.40%
21.30%
LIC MF S&P BSE Sensex Index Fund
19.03%
20.33%
Source: ACE MF, Trailing returns as on January 15, 2024
Motilal Oswal S&P BSE Enhanced Value Index Fund, the topper in the category, offered 59.31% in 2023. Motilal Oswal S&P BSE Quality Index Fund gave 32.44% in 2023.
UTI Nifty 50 Index Fund, the largest passive large cap scheme based on assets managed, offered 20.89%. The scheme manages assets worth Rs 15,002.04 crore. HDFC Index Fund-NIFTY 50 Plan, second largest scheme based on assets under management, gave 20.78%. The scheme manages assets of Rs 11,887.46 crore. Both these schemes failed to beat their respective benchmarks in 2023.
Taurus Nifty 50 Index Fund, the smallest passive large cap scheme, offered 19.40% against 21.30% offered by its benchmark (NIFTY 50 – TRI). The scheme failed to beat its benchmark in 2023. The scheme manages assets of Rs 3.23 crore.
Outperformers in the category Motilal Oswal S&P BSE Enhanced Value Index Fund gave 59.31%, compared to 21.30% offered by its benchmark (NIFTY 50 – TRI) in 2023. Motilal Oswal S&P BSE Low Volatility Index Fund offered 28.88% against 21.30% by its benchmark.
Motilal Oswal S&P BSE Quality Index Fund and UTI S&P BSE Low Volatility Index Fund gave 32.44% and 29.36% respectively against 21.30% by the benchmark (Nifty 50-TRI).
Around 25 schemes have offered more than 25% in 2023. Around 18 schemes have offered approximately 20%.
Note, the above exercise is not a recommendation. The purpose of the exercise was to see how passively-managed large cap schemes performed in 2023.
One should not make investment or redemption decisions based on this exercise.
Published On Jan 18, 2024 at 01:15 PM IST
Join the community of 2M+ industry professionals
Subscribe to our newsletter to get latest insights & analysis.
