Section 1 · Active vs Index
What exactly is an "active" fund — and should you care?
Think of two kinds of chefs. One follows a fixed recipe exactly (index fund). The other improvises based on skill (active fund). The second can be brilliant — or wrong. The extra fee is for that expertise.
🧠
Active Fund
✅A fund manager handpicks stocks using research and judgment
✅Goal: beat the market and earn you more than a plain index
⚠️Charges higher fees (1–2% per year, called expense ratio)
⚠️Only worth it when the manager consistently beats the index — many can't
📊
Index Fund
✅Automatically copies a market index like Nifty 50 — no judgment calls
✅Very low fees (0.1–0.2% per year)
✅Predictable: you get roughly what the market gives
💡No chance of beating the market, but no risk of badly lagging it either
📖 3 numbers we use to spot real skill vs a lucky streak
🎯
Alpha
Extra return above the market
If the market gave 12% and your fund gave 15%, alpha is +3%. Positive = manager added value. Negative = they didn't.
📐
Information Ratio (IR)
How consistent is that extra return?
Anyone can beat the market once. IR above 0.5 means they do it reliably, year after year. Think of it as the 'reliability score' for alpha.
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Beat Rate
% of funds in a group beating the index
If 70% of funds in a category beat their benchmark, it's worth exploring. Below 40%? Just buy the index and save on fees.
⚠️
The honest truth about active funds
Industry-wide, only about — of active funds beat their benchmark over 3 years. That means randomly picking an active fund gives you a better-than-even chance of doing worse than a simple index. But in certain categories the odds are much better — that's exactly what Section 2 shows you.
Section 2 · Where Active Wins
Which categories are worth paying extra for?
In some categories, active managers consistently earn their fees. In others, a low-cost index beats most of them. Here's the honest, data-driven split.
✅
Active earns its fees here
High alpha + majority of funds beating the market
No category currently shows consistent outperformance — market conditions may be shifting.
📊
Index fund likely better here
Most active funds fail to beat the market in these
No category is clearly dominated by index funds right now.
How often do active funds beat their benchmark — by category?
Each bar shows % of funds in that category beating their index over 3 years. The line at 50% is break-even — above it, active generally pays off.
Above 55% — Active likely worth it
40–55% — Mixed results
Below 40% — Index likely better
Top 6 categories — extra return delivered vs % beating benchmark
Green bar = extra return above market (alpha). Blue bar = how many funds in that group actually beat their index.
Alpha (extra return)
Beat rate
Negative alpha
Section 3 · Category Scoreboard
Average fund return vs benchmark — across all time periods
Average fund return vs benchmark across all time periods. Sort any column to find what matters to you.
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Highest beat rate category
—
— beat their benchmark
🎯
Best risk-adjusted category
—
Avg IR 3Y: —
📈
Top 1Y sub-category
—
Avg return: —
📊
Top 3Y sub-category
—
Avg return: —
🌱
Top 5Y sub-category
—
Avg return: —
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Important Disclaimer: This data is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future returns. All data sourced from AMFI, updated daily. Read all scheme-related documents and consult a SEBI-registered advisor before investing.