The recent slump in the stock market has significantly impacted equity mutual funds, with several schemes reporting double-digit negative returns over the past one and three months. Many funds underperformed their benchmarks, leaving investors concerned. Despite the short-term dip, experts continue to recommend sticking to Systematic Investment Plans (SIPs) to capitalize on lower prices for future gains.
Here’s a look at the worst-performing mutual funds across categories in the last three months.
Largecap Funds Face the Heat
Largecap funds, typically considered a safer choice, weren’t spared from the market’s downturn. Some of the worst performers include:
- PGIM India Large Cap Fund: -7.62%
- Axis Bluechip Fund: -7.60%
- UTI Large Cap Fund: -7.34%
- Franklin India Bluechip Fund: -6.56%
- HDFC Top 100 Fund: -6.52%
Large & Midcap Funds Under Pressure
Funds in this hybrid category also struggled to keep up, with steep declines observed across the board:
- Aditya Birla SL Equity Advantage Fund: -7.27%
- Franklin India Equity Advantage Fund: -7.17%
- Quant Large & Mid Cap Fund: -6.90%
- Bandhan Core Equity Fund: -6.67%
- Mirae Asset Large & Midcap Fund: -6.55%
Flexicap Funds Take a Big Hit
Flexicap funds, known for their versatility in allocating assets, reported some of the highest losses:
- NJ Flexi Cap Fund: -9.86%
- Quant Flexi Cap Fund: -8.20%
- Bandhan Flexi Cap Fund: -7.08%
- Mahindra Manulife Flexi Cap Fund: -6.58%
- ICICI Pru Flexicap Fund: -6.46%
Midcap and Small-Cap Funds Also Suffer
Both midcap and small-cap funds faced significant challenges, with several reporting notable losses:
Midcap Funds:
- Quant Mid Cap Fund: -7.76%
- Mirae Asset Midcap Fund: -6.77%
- ITI Mid Cap Fund: -6.74%
Small-Cap Funds:
- Baroda BNP Paribas Small Cap Fund: -5.16%
- Mahindra Manulife Small Cap Fund: -4.94%
- SBI Small Cap Fund: -4.35%
The Worst Hit: Sectoral and Thematic Funds
Some sectoral and thematic funds witnessed double-digit losses in just one month, with notable examples being:
- ICICI Pru Nifty Oil & Gas ETF: -19.50%
- Quant PSU: -15.57%
- Motilal Oswal Nifty India Defense Index: -14.42%
- Mirae Asset Nifty 200 Alpha 30 ETF FoF: -10.51%
- Edelweiss Business Cycle Fund: -10%
Expert Advice: Stay Invested and Focus on SIPs
Despite these setbacks, financial advisors emphasize the importance of maintaining SIPs. The current dip provides an opportunity to invest at lower valuations, which could yield higher returns when the market rebounds. Experts remain optimistic about India’s long-term growth story, urging investors to focus on long-term goals instead of reacting to short-term volatility.
For investors, diversification and regular reviews of their portfolio remain essential to weather market fluctuations effectively.
