With great fanfare the mutual fund industry announced CRISIL-AMFI Equity Fund Performance Index yesterday, which is claimed to give an annualised return of 22%. However, a simple check shows that there were 25 equity schemes in April 1997 (that have survived) and only six have delivered a return above 22%. The average return of all equity schemes was 17%

Jason Monteiro

At the Mutual Fund Summit 2013 organised by the Confederation of the Indian Industry (CII), CRISIL and the Association of Mutual Funds in India (AMFI) jointly launched a family of mutual fund performance indices across all categories. As per the report titled CRISIL-AMFI Mutual Fund Performance Insights, “These indices, the first of their kind in the country, represent the performance of various mutual fund categories and enable comparison of these categories with appropriate benchmarks across time frames and market cycles.” Out of the five main categories, the CRISIL-AMFI Equity Fund Performance Index is claimed to have delivered an annualised return of 22% since 1 April 1997, as compared to annualised returns of 12% and 13% by the benchmarks CNX NIFTY and CNX 500, respectively during the same period.

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