Morningstar study finds mixed active-vs-passive fund results
In short
Morningstar India said active equity funds in India have had mixed results against passive funds. Mid-cap funds have struggled to beat passive rivals over longer periods, while small-cap funds have done better over five years.
This matters for investors choosing between active and passive funds. The report does not name funds or give exact return numbers, so the full scale of the gap is still unclear.
What the reporting says
Morningstar India's study found mixed results for active equity funds versus passive rivals across Indian market segments, according to a publisher summary. It said mid-cap funds struggled to beat passive funds over longer periods, while small-cap funds showed stronger five-year performance. The reporting does not give fund names or exact return figures, so the main takeaway is that outcomes vary by segment and selection matters.
Why it matters
Morningstar India's study, as summarized by CNBC TV18 Market, compared active equity funds with passive rivals across Indian market segments. The report says mid-cap funds have had trouble outperforming over longer periods, while small-cap funds have shown better five-year results. That matters for retail investors and fund managers because it points to uneven performance by segment, but the summary does not provide specific fund names, returns, or dates.