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Tag Archives: spiva india

Jan 5, 2023

Indexing’s Evolution in Indian Markets

Indexing, also known as index-based or passive investing, has been slowly but steadily growing and transforming asset management and financial markets in India. For more than a decade, there has been a strong preference for actively managed funds among Indian investors, and understandably so as historically these were the only financial products that dominated the…

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May 3, 2022

Results from the SPIVA India Year-End 2021 Scorecard

The S&P Indices Versus Active (SPIVA®) Scorecard,1 published semiannually, measures the performance of actively managed funds against their corresponding benchmarks. The latest SPIVA India report provides a number of interesting insights about the performance of active versus passive across active fund categories. 1. Long-Term Outperformance of Active Funds Was Difficult Indian bond funds had a…

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Mar 8, 2022

India’s ETF Market: Examining Passive Investing’s Continued Growth

Market Resilience The financial markets have been witness to numerous market cycles, trends, and crises, from the technology bubble in 2000 to the subprime housing crisis around 2007-08 and the collapse of Wall Street in 2009. 2020 brought the unexpected disruptor, coronavirus, and the ongoing pandemic changed the way markets and economies reacted. As with…

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Nov 16, 2021

No Time to Thrive

S&P DJI has just released the final regional edition of our S&P Index Versus Active (SPIVA®) Mid-Year 2021 Scorecards. The semiannual reports cover the performance of actively managed funds in the U.S., Canada, Latin America, Europe, South Africa, India, Japan, Australia, and our newest regional addition, the Middle East and North Africa (MENA). SPIVA Scorecards…

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May 3, 2021

Dissecting the Performance of Indian Equity Active Funds in 2020

The percentage of active funds that underperformed their respective benchmarks in the Indian Equities Large-Cap and Mid-/Small-Cap fund categories over a one-year investment horizon doubled from 2019 to 2020, as seen in the SPIVA® India Year-End Scorecards for 2019 and 2020. The percentage of Large-Cap active funds that underperformed the S&P BSE 100 over a…

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Mar 30, 2021

The Shift to Passive in India

In 2020, the Indian ETF market continued to expand, finishing the year with ~USD 37 billion in assets spread across 99 listings. This represents a year-over-year increase of USD 23.3 billion, or 171%, placing India as the ETF market in the Asia-Pacific region with the highest growth on a percentage basis in 2020.1 Within the…

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Jul 8, 2020

Core and Satellite – The Best of Both Worlds

The contentious debate of active versus passive is perpetual. Over the past 15 years, SPIVA® Scorecard results have reflected on the trends of active fund management vis a vis benchmarks, wherein statistics tilt the balance in favor of indexing. This recurring feature of benchmark outperformance is contributing to the adoption and growth of the passive…

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Jun 18, 2020

2020 – The Dawn of the Passive Investing Era in India: Part Two

The previous blog highlighted the significant shifts to passive investing in India. However, Indian passive trends have continued to favor plain vanilla indices due to their ease of understanding, rather than exploring alternative thematic indices, such as the S&P Kensho New Economies Indices or factor Indices. However, once the acceptability and acceptance of passive investment…

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May 25, 2020

Is Alpha Generation a Zero-Sum Game in Indian Large-Cap Equities?

Globally, as markets have matured, we have seen the institutional share of public equity increasing.[1] Professional managers are continuing to enter the investment management industry, resulting in market research becoming more institutionalized. Hence, more and more industry research analysts are competing against each other and chasing the same set of stocks to generate alpha (or…

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May 21, 2020

Do Management Fees Outweigh the Alpha Generated in Indian Equity Large-Cap Funds?

Without Fees, Do Active Managers Outperform their Benchmarks? The SPIVA® India Year-End 2019 Scorecard shows that, over longer horizons, a large proportion of active funds underperform their respective category benchmarks (see Exhibit 1a). The SPIVA India Year-End 2019 Scorecard evaluates the performance based on net-of-fees returns (i.e., gross returns less the management fees). But do…

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