Active Large-Cap Fund Underperformance vs. Benchmark:
| Timeframe | % of Large-Cap Active Funds Underperforming the Index | In plain terms |
|---|---|---|
| 1 Year | 75.0% | 3 in 4 funds failed to beat the index |
| 3 Years | 74.2% | 3 in 4 funds failed over 3 years |
| 5 Years | 84.4% | 4 in 5 funds failed over 5 years |
| 10 Years | 76.3% | 3 in 4 funds failed over a decade |
Source: SPIVA India Scorecard, Year-End 2025. S&P Dow Jones Indices LLC. Benchmark: S&P India LargeMidCap. Past performance is no guarantee of future results.
The gap between Nifty and most actively managed portfolios widens over time because human decision-making compounds mistakes, not just returns. Cutting winners early, holding losers too long, reacting to headlines — each decision costs a percentage point.
Momentum investing solves this structurally. It holds what the market is rewarding and exits what the market is rejecting — based on data, not opinion. Applied systematically over multiple cycles, this approach has consistently delivered above-index returns in Indian markets.
Momentum investing solves this structurally. It holds what the market is rewarding and exits what the market is rejecting — based on data, not opinion. Applied systematically over multiple cycles, this approach has consistently delivered above-index returns in Indian markets.
Use Quant Compounding. Quarterly rebalancing gives selected positions time to run and deliver their full return. Consistent outperformance is not about being right every month — it is about holding winning positions long enough to compound into meaningful alpha. Less churn, more patience, better outcomes.