Small-cap funds with higher overlap don't always beat peers
In short
Small-cap mutual funds with more overlap with the benchmark did not always do better. Value Research data showed one-year returns ranging from -0.1% to 29.1% across 10 schemes.
This matters because investors may need to look at more than just overlap when picking funds. The reporting does not say which funds were the best or worst performers.
What the reporting says
Small-cap mutual funds with higher benchmark overlap did not necessarily produce better returns, according to Value Research data cited in the report. The one-year return range across 10 schemes was from -0.1% to 29.1%. The immediate implication is that investors should not rely on overlap alone when choosing funds, but the reporting does not identify the schemes by name or explain each portfolio mix.
Why it matters
The report says small-cap mutual funds with higher benchmark overlap did not necessarily deliver better returns, based on Value Research data. Across 10 schemes, one-year returns ranged from -0.1% to 29.1%. The takeaway is that overlap alone is not a reliable selector, but the reporting does not name the funds, their portfolios, or the reasons for the spread in performance.