The Indian Equity market was a mixed bag in 2018-19 (till March 31, 2019) with the key indices providing widespread returns. Though thewas up 16.5% for the year, the Midcap 100 was down 1.9% and the Small Cap 250 was down 12.4% for the year. This shows a wide divergence of performance between the Large, Mid and Small cap Indices in this year. In comparison, the Scripbox was up by 3.97% resulting in an underperformance over 50 TRI.
For our regular) investors, a monthly in Scripbox recommended would have returned 6.7% this year against 16% for a in the 50 TRI. Also, the Scripbox Index lagged some of the larger , as some of the mid and small cap oriented funds did better than the large-cap oriented funds during the financial year.
Overall, we believe that the equities continue to be the best option among investable assets and we are quite confident entering 2019-20.
1. The core idea of Scripbox
The objective of the Scripboxof is to select a of 2 Tax Planning funds that have a consistent track record of performing better than the 50 TRI*, and therefore expected to do better than the 50 TRI*.
We had the following 2 funds in the financial year 2019. This Report card is based on the performance of these funds from April 1, 2018 till Mar 31, 2019.
- DSP BR Tax Saver Fund (G)
- L&T Tax Advantage Fund (G)
The analysis of the absolute performance of the Scripboxequity is a combination of the performance of the 50 TRI, and the performance of the relative to the 50 TRI.
- In 2018-19, the was up 16.45%
- Over a decade, the has returned a CAGR of 15.80%.
- We continue to believe that the case of Indian equities remains strong and equities as an asset class will continue to outperform fixed income over the long run.
These are returns based on a one-time investment. For returns for ainvestor, kindly refer section 6 below.
3.50 Relative to Other Benchmarks
In FY 2019, most benchmarks including the mid cap and small cap indices provided mixed returns. Small cap significantly under performed50 TRI
Both DSP BR Tax Saver Fund(G) and L&T Tax Advantage Fund (G) have underperformed the50 TRI
5. Scripboxcompared to other funds
The top 10 funds by assets, delivered an average return of 5.6% in FY 19
6. Returns forinvestors
Assuming aon the 10th of each month, the XIRR returns for a investor was 6.7% in the Scripbox of , compared with 16.0% in the 50 TRI.
returns in the Scripbox :
Above Scripbox report card considers50 TRI as its benchmark for the purpose of comparison. This is as per SEBI’s circular dated Jan 04 2018 which required all the to benchmark their performance against Total Returns Index (TRI) instead of Price Return Index (PRI).
*In line with the spirit of above circular, Scripbox Report Card will considerLarge Mid 250 TRI as a benchmark for comparison from next year onwards. Large Mid 250 TRI is considered to be the appropriate benchmark for category of funds based on objective and composition of most funds in this category.