SPIVA India Scorecard 2020

What is SPIVA? 

S&P Indices versus Active (SPIVA) scorecards are semiannual scorecards published by S&P Dow Jones Indices that compare the performance of active equity and fixed income mutual funds against their benchmarks over a number of time horizons. 

The inaugural scorecard was published in 2002 and focused on the U.S., but the scorecard has since been extended to Australia, Canada, Europe, India, Japan, Latin America, and South Africa.

What is unique about the SPIVA scorecards?

SPIVA scorecards are unique because they rely on datasets that address issues related to measurement techniques, universe composition, and fund survivorship. While these issues are far less frequently discussed, they can have meaningful impacts on results. In particular, the datasets correct for the following biases.

Survivorship Bias Correction: Unlike other comparison reports, SPIVA scorecards account for the entire opportunity set—not just the survivors—thereby eliminating survivorship bias.

Apples-to-Apples Comparison: Fund returns are often compared with popular benchmarks such as the Nifty 50, regardless of size or style classifications.  SPIVA scorecards avoid this pitfall by comparing funds against benchmarks that are appropriate for that particular investment category.
For example, India mid-cap funds are compared with the mid-cap

Asset-Weighted Returns:  A more accurate representation of how market participants fared in a particular period can be ascertained by weighting each fund according to its net assets. SPIVA scorecards show both equal- and asset-weighted averages.

Style Consistency: U.S., Canada, and India SPIVA scorecards measure consistency for each style category across different time horizons. Style consistency is an important metric because style drift (the tendency of funds to diverge from their initial investment categorization) can affect asset allocation decisions.

Data Cleaning: SPIVA scorecards avoid double counting multiple share classes in all count-based calculations.

SPIVA Around the World – Percentage of Active Funds That Underperformed Benchmarks:


SPIVA 2020


SPIVA India Scorecard.

The SPIVA India Scorecard compares the performance of actively managed Indian mutual funds with their respective benchmark indices over 1-, 3-, 5-, and 10-year investment horizons. In this scorecard, they studied the performance of three categories of actively managed equity funds and two categories of actively managed bond funds over the 1-, 3-, 5-, and 10-year periods ending in June 2020.

Below is the snapshot of SPIVA India Mid Year report: 

Over the one-year period ending in June 2020, the S&P BSE 100 was down 11.54%, with 48.39% of funds underperforming the benchmark. Over H1 2020, 45.16% of the funds underperformed the S&P BSE 100.

SPIVA 2020

Over longer horizons, 67.67% of the actively managed large-cap equity funds underperformed the large-cap benchmark.


As you can see from the above image, over longer horizons, majority of the actively managed large-cap equity funds in India underperformed the BSE 100.

Indian mutual funds, as a whole, do not beat the index. The important point to note from the above report is, it does not make sense to invest in active equity funds. Investing in Index Funds or ETFs is the way to go.

Check out the full report here SPIVA