No actively managed large cap fund beats Sensex in 2018

One of the major reasons why 'active investing' is so popular in India is that fund managers, upon choosing stocks, actually manage to beat the market, i.e., generates more returns than the fund's underlying index. That excess return is why investors are ready to pay a higher cost of fund management. However, 2018 may go down as an exception. Among the top 30 actively managed large-cap funds, not one has given more return than the Sensex! So, don't be surprised if your chosen actively managed large-cap fund, after years of shining performance, comes a cropper this year. Read on. Tough task As on September 4, the Sensex has generated 12 per cent return. If this 12 per cent gain is taken as a benchmark for the top 30 large-cap equity, every active fund has failed to ev