While your rebuttal is sound, it hinges on the return of one performer, Nifty Junior, and it hinges on this time (where five year returns for mid-caps in particular have been excellent). One might find very different results if you consider rolling five year periods; the Nifty outperformed the Junior for most of the time between 2008 and 2013 for example and the meteoric rise of Junior was after 2014.
Overall, the correct way to judge an active MF beating the ETF (which is a useful comparison because it equalizes for dividends) is to say: I will choose some of the top performing mutual funds — use multi-cap funds, not just large cap. If I did this five years ago (top performing funds at that time) and then compared to the ETF now, would I have beaten the ETF?
No one just buys allmutual funds. they buy the top performers. So if the top performers consistently beat ETFs then the mutual funds win. If they consistently lose then ETFs win. If nothing’s consistent, you might as well do a coin toss between the two.
I just choose to invest directly in stocks and use mutual funds for debt, but hey, that’s me.