Only 6 Active Large-Cap Funds Consistently Beat BSE 100 Benchmark

Mutual funds are like big shared piggy banks where lots of people pool money to buy shares of companies.

Large-cap funds put that money into big, well-known companies.

Someone studied 24 large-cap funds that have been running for at least 10 years.

Each fund was compared with a measuring stick called the BSE 100, which tracks how the 100 biggest listed companies on India's stock exchange are doing.

Only six funds finished ahead of this measuring stick in all four time checks: one, three, five and 10 years.

The six winners are the Invesco, Baroda BNP Paribas, Edelweiss, Bandhan, Kotak and HDFC large-cap funds.

Invesco's fund had the biggest lead, earning much more than the BSE 100 over one and three years.

But some winners beat the benchmark by only a tiny margin.

In July, investors pulled more money out of large-cap funds than they put in — the first time that happened in almost three years.

Even so, experts warn that past performance does not guarantee future results, and these funds still carry market risk.