Assessing Subsequent-Year Performance of Morningstar Award-Winning Large-Cap Equity Funds
Keywords:
Large-cap fund, Morningstar awards, Mutual fund performanceAbstract
The Morningstar Thailand Awards annually recognize outstanding performance in mutual funds and asset management companies across various categories. These include large-cap equity funds, mid-cap and small-cap equity funds, medium and long-term bond funds, and short-term bond funds. Evaluation criteria primarily focus on returns and risks. Winning these awards brings a notable influx of investments from individual investors who place their trust in the recognized funds.
This research evaluates the performance of award-winning large-cap equity mutual funds over a 10-year period. Annual returns were compared to the SET50 Total Return Index (SET50 TRI), a benchmark for large-cap equity funds. Findings showed that, despite receiving the awards, the funds did not outperform the benchmark in the first, second, and third years. The probabilities of outperforming were 36%, 30%, and 11% respectively. This highlights the challenges faced by these funds in sustaining exceptional performance over time. The study contributes to understanding the relationship between Morningstar Awards, subsequent fund performance, and benchmark comparisons.
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