Large-cap equity funds have become one of the popular categories for index investing because relatively few actively managed large-cap funds beat their benchmarks consistently year after year. But certain categories of actively managed funds could be making a comeback.
According to Bank of America Merrill Lynch, actively managed large-cap core equity funds in July experienced their best performance in nearly five years compared to their benchmarks. Sixty-five percent of large-cap core funds beat their benchmark in July and large-cap value funds performed even better, with 69% besting their benchmarks.
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Year to date, however, growth funds performed best compared to their respective benchmarks. Sixty-seven percent of large-cap actively managed growth funds outperformed their benchmarks YTD compared to just 28% of large-cap core and 58% of large-cap value funds.