Actively-managed funds limit losses in a tough year

Small-cap index funds fell 13.2% past year vs 10.6% for active ones

- ANANYA GROVER

THE FALL IN actively-managed smalland flexi-cap schemes has been less compared with innovative indices unveiled by asset management companies (AMCs) over the past one year.

Industry players believe there is still a huge scope for generating alpha.

The number of index funds launched by AMCs has surged 42% year-on-year to 345 as of October end. According to data from Value Research, the average return from small-cap index funds, including smart beta ones with momentum and quality, and alpha stocks, in the past one year is (-)13.2%, compared with (-)10.66% for actively managed funds.

The performance has been better in the flexi-cap category in which index funds on an average have delivered a return of (-)5.7%, while the one-year return from actively managed schemes has fallen only 1.36%.