In the first half of 2026, the S&P India LargeMidCap index fell 4.0%, while the average active large-cap fund lost 5.1% when every fund is given equal importance. For families comparing index funds vs active funds in India, these are the numbers now being discussed.
The second average is calculated differently. When the funds are weighted by the amount of investor money they manage, the average loss was 5.6%. Alongside this, the S&P Indices Versus Active (SPIVA) Mid-Year 2026 scorecard shows that 85% of the active large-cap funds trailed their benchmark.
The scorecard also shows that the shortfall becomes bigger when longer periods are taken, and these figures are covered further below. However, the percentage of funds that lag depends on the category, the time period and the index chosen for comparison, so a single headline figure does not describe every fund.
Where active funds lag and where they kept pace
| Category | What happened |
|---|---|
| Large-cap funds | Index fell 4.0%; average fund lost 5.1% (equal weighted) or 5.6% (asset weighted); 85% trailed the benchmark |
| ELSS funds (tax saving) | Average fund fell 2.4% on an equal weighted basis, the same as the S&P India Broad Market Index (BMI); even then, 55% trailed that benchmark |
| Small caps | The S&P India SmallCap index rose 7.7%, the strongest segment of the period |
Investors holding small cap funds were therefore in the part of the market where the index itself was moving up.
An earlier SPIVA India scorecard, reported by Cafemutual and based on data from late 2025, gives the longer period numbers. Over 10 years, 73% of large cap funds and 82% of mid and small cap funds had underperformed their benchmarks. The large cap figure is higher over 5 years than over 10 years, so the period chosen changes the result for same category.
A contested benchmark and where the money is going
A blog post from BasuNivesh, published around March 2026, questions the way SPIVA India builds its large-cap comparison. The critic says the scorecard has measured large-cap funds against the S&P India LargeMidCap index which covers about the top 200 stocks, since 2024, while large-cap funds can hold only the top 100 stocks. According to the blog, this difference may inflate the underperformance rates. This is the view of one critic, and the scorecard figures are reported here as S&P Dow Jones Indices published them.
Meanwhile, money is still going into passive funds.
| Measure | Figure |
|---|---|
| AUM of index funds and exchange traded funds | Fell 4.6% month on month to Rs 14.70 lakh crore; about 18% of the industry AUM of around Rs 82.6 lakh crore |
| Net inflows | Rs 11,887 crore |
| Debt index funds | The largest net outflow in category, at Rs 6,258 crore |
| New passive schemes | Eight launched in September, raising Rs 685 crore |
| FY26 (Finnovate analysis) | Passive AUM rose 23% to Rs 14.11 lakh crore, with domestic equity index funds holding about Rs 1.93 lakh crore |
The after cost comparison in the title therefore cannot yet be settled from this data.
