CRISIL and the Association of Mutual Funds in India (AMFI) recently jointly launched a group of mutual fund performance indices across 5 categories —Equity funds, Equity-linked savings schemes (ELSS), Debt funds, Money market funds and Hybrid funds.
These co-branded indices, the first of their kind in India, represent the performance of various mutual fund categories and enable comparison of these categories with appropriate benchmarks across time frames and market cycles. By increasing awareness about the performance of mutual funds, the indices will help in bringing greater transparency & boost investor confidence.
Based on time series data since 1997, the indices have been developed and will be maintained by CRISIL. They cover 5 broad mutual fund categories, and are named CRISIL-AMFI Equity Fund Performance Index, CRISIL-AMFI ELSS Fund Performance Index, CRISIL-AMFI Debt Fund Performance Index, CRISIL-AMFI Money Market Fund Performance Index and CRISIL-AMFI Hybrid Fund Performance Index.
These indices also have various sub-categoris. The indices will be updated on a quarterly basis & will be available on www.crisil.com and www.amfiindia.co
Roopa Kudva, Managing Director and Chief Executive Officer, CRISIL, said, “The introduction of the CRISIL - AMFI MF performance indices is an important milestone in bringing greater transparency to the Indian mutual fund industry. These indices will add considerable value to the retail investors & boost their confidence in mutual funds. Retail investors can use these indices as a standard performance metrics to understand the benefits of investing through mutual funds.”
Mr. H.N. Sinor, CEO, AMFI, “The performance trends seen in the CRISIL - AMFI MF performance indices clearly uphold the benefits of mutual fund investing. They conclusively prove that mutual funds have outperformed broader markets & are therefore, an ideal medium for wealth creation over longer time frames.”
Ashu Suyash, Chairperson, AMFI Customer Engagement Committee and Chief Executive, L&T Mutual Fund said, “These indices developed by CRISIL will bring in greater transparency & awareness on the benefits of investing in mutual funds and the role they can play in wealth creation over time. Furthermore, these will provide an appropriate benchmark to the investors and the industry at large.”
Some key observations that have emerged from the performance analysis of these indices...!:
• • The CRISIL - AMFI Equity Fund Performance Index has given an annualised return of 22 % since April 1, 1997, as compared to annualised returns of 12 % and 13 % by the benchmarks CNX NIFTY and CNX 500, respectively during the same period.
• •The CRISIL - AMFI Equity Fund Performance Index has never given a negative return for any 5 year period on a daily rolling basis since April 1, 1997.
• • The CRISIL - AMFI Money Market Fund Performance Index has consistently outperformed the savings bank rate in the range of 1.1% to 5.5%.
• The CRISIL - AMFI Debt Fund Performance Index outperformed fixed deposits (FD) by a significant margin during declining interest rate cycles.
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