10 Worst Performing Mutual Funds within the Final 10 Years (0.72% to six.2% CAGR Returns)

Over the previous decade, the Indian inventory market has seen a outstanding rally. From 12-Could-2015 to 11-Could-2025, the Nifty 50 index has delivered a 10-year CAGR of roughly 12.7%. Throughout this era, many well-managed lively fairness mutual funds have generated double-digit annualised returns, outperforming the benchmark. Nevertheless, not all mutual funds have lived as much as expectations. A shocking variety of fairness funds—particularly these centered on worldwide, sectoral, or thematic themes—have considerably underperformed. Actually, some have returned as little as 0.72% CAGR over the past 10 years, turning a ₹1 lakh funding into simply round ₹1.07 lakhs. On this article, we are going to talk about the 10 Worst Performing Mutual Funds within the Final 10 Years (12-Could-2015 to 11-Could-2025).

How We Filtered these Worst Performing Mutual Funds?

• We thought of all fairness mutual funds, together with sectoral and thematic funds and world funds.
• We excluded ETFs from this checklist.
• We filtered the underside 10 funds primarily based on their 10-year CAGR returns.
• These 10 funds generated 0.7% to six.2% annualised returns within the Final 10 Years.

We may observe that a few of these are a part of our earlier article 10 Worst Performing Mutual Funds in final 5 years.

Listing of 10 Worst Performing Mutual Funds within the Final 10 Years

Listed below are the ten worst-performing mutual funds primarily based on their 10-year annualised returns:

10 Worst Performing Mutual Funds within the Final 10 Years – Deep Dive

Let’s discover these funds intimately, their goals, efficiency, and our view.

#1 – HSBC Brazil Fund – 10-Yr CAGR Return: 0.72%

Funding Goal: To offer long-term capital development by investing in Brazil-focused equities.

Annualised Returns:

• 1 Yr: -2.8%
• 3 Yr: 4.6%
• 5 Yr: 8.3%
• 10 Yr: 0.7% (₹ 1 Lakh would have turned to 1.07 Lakhs)

Expense Ratio: 0.93% (Direct plan)

Beta: 0.44 indicating low volatility.

Alpha: -4.27 indicating poor risk-adjusted efficiency.

Our View: The HSBC Brazil Fund has underperformed within the long-term, with a 10-year return of simply 0.72%, and up to date returns additionally stay in destructive territory. The funding of ₹ 1 Lakh since inception would have made this fund worth as ₹ 70,685 (destructive CAGR return of -2% since inception). Regardless of Brazil’s potential as an rising market, poor risk-adjusted efficiency make this fund a high-risk choice. Given the continued macroeconomic and political challenges in Brazil, buyers could also be higher off avoiding such underperforming areas. As all the time, it’s sensible to stay to a disciplined asset allocation technique and think about allocating solely a small portion of the portfolio to worldwide funds with a constant observe report.

#2 – DSP International Clear Vitality Fund of Fund – 10-Yr CAGR Return: 2.05%

Funding Goal: To offer long-term capital development by investing predominantly in world corporations engaged within the clear and renewable vitality sector, by way of abroad mutual funds or ETFs.

Annualised Returns:

• 1 Yr: -6.5%
• 3 Yr: 5.3%
• 5 Yr: 9.7%
• 10 Yr: 2.05% (₹ 1 Lakh would have turned to 1.22 Lakhs)

Expense Ratio: 1.54% (Direct plan)

Beta: 0.58 indicating low volatility.

Alpha: -6.43 indicating poor risk-adjusted efficiency.

Our View: The DSP International Clear Vitality Fund of Fund has considerably underperformed over the long run, with a modest 10-year CAGR of two.05%, translating to only ₹1.22 lakhs on a ₹1 lakh funding. With a low beta of 0.58, the fund is much less risky, however that hasn’t translated into higher returns. Take a look at 20 Mutual Fund Schemes with Low Beta and Excessive Alpha.

Whereas the clear vitality sector holds long-term promise, particularly because the world transitions to renewables, the fund’s historic efficiency suggests it’s not probably the most environment friendly automobile for capturing that development. Buyers must be cautious and think about publicity to world clear vitality by way of extra diversified or actively managed methods with confirmed observe data.

#3 – Franklin India Feeder – Templeton European Alternatives Fund – 10-Yr CAGR Return: 2.4%

Funding Goal: Invests in Franklin European Development Fund specializing in European equities.

Annualised Returns:

• 1 Yr: 8.7%
• 3 Yr: 9.3%
• 5 Yr: 8.9%
• 10 Yr: 2.4% (₹ 1 Lakh would have turned to 1.27 Lakhs)

Expense Ratio: 0.52% (Direct plan)

Beta: 0.28 indicating low volatility.

Alpha: -0.3 indicating poor risk-adjusted returns.

Our View: As indicated in our earlier article, this fund’s European publicity has not translated into sturdy returns traditionally. A comparatively excessive expense ratio and marginally destructive Alpha scale back its attraction. Whereas Europe has proven indicators of restoration in sure sectors, buyers might need to think about diversified world funds or developed market funds with higher consistency and decrease prices.

#4 – PGIM India Rising Markets Fairness Fund – 10-Yr CAGR Return: 2.7%

Funding Goal: This fund focuses on alternatives in rising market equities excluding India.

Annualised Returns:

• 1 Yr: 11.3%
• 3 Yr: 11.0%
• 5 Yr: 5.1%
• 10 Yr: 2.7% (₹ 1 Lakh would have turned to 1.3 Lakhs)

Expense Ratio: 1.38% (Direct plan)

Beta: 0.48 indicating low volatility.

Alpha: -1.78 indicating poor danger adjusted returns.

Our View: Whereas the PGIM India Rising Markets Fairness Fund goals to faucet into development throughout rising markets (excluding India), its long-term efficiency has been comparatively low. With a 10-year CAGR of simply 2.7% and a 5-year CAGR of 5.1%, the returns haven’t lived as much as expectations. Regardless of a comparatively low Beta indicating decrease volatility, the destructive Alpha suggests subpar risk-adjusted returns. As highlighted earlier, buyers must be cautious about allocating vital parts to underperforming or inconsistent worldwide markets. A greater strategy is to take care of a well-diversified portfolio and think about world funds with sturdy and steady efficiency.

#5 – Edelweiss Rising Markets Alternatives Fairness Offshore Fund – 10-Yr CAGR Return: 4.75%

Funding Goal: Invests in JPMorgan Funds – Rising Markets Alternatives Fund for long-term capital appreciation.

Annualised Returns:

• 1 Yr: 5.6%
• 3 Yr: 6.8%
• 5 Yr: 5.9%
• 10 Yr: 4.75% (₹ 1 Lakh would have turned to 1.49 Lakhs)

Expense Ratio: 1.46% (Direct plan)

Beta: 0.56 indicating low volatility.

Alpha: –5.07 indicating poor efficiency relative to danger.

Our View: This fund’s efficiency has remained beneath par, regardless of its publicity to numerous rising markets. The mix of a comparatively excessive expense ratio and weak Alpha signifies that the fund has not generated sufficient risk-adjusted returns to justify its value. Buyers seeking to diversify internationally ought to think about different world funds with stronger historic efficiency and extra constant Alpha.

You can too evaluation 20 Mutual Funds that delivered optimistic returns yearly within the final 10 years

#6 – Kotak International Rising Market Fund – 10-Yr CAGR Return: 4.9%

Funding Goal: To offer long-term capital development by investing in rising markets throughout the globe.

Annualised Returns:

• 1 Yr: 4.1%
• 3 Yr: 7.3%
• 5 Yr: 8.9%
• 10 Yr: 4.9% (₹ 1 Lakh would have turned to 1.61 Lakhs)

Expense Ratio: 1.3% (Direct plan)

Beta: NA

Alpha: NA

Our View: Its 10-year CAGR return of 4.9% stays low, reflecting the general volatility and unpredictability of rising markets. Buyers searching for worldwide publicity ought to deal with funds with a powerful long-term observe report throughout market cycles.

#7 – HSBC International Rising Markets Fund – 10-Yr CAGR Return: 5.38%

Funding Goal: Invests in rising markets globally to generate long-term returns.

Annualised Returns:

• 1 Yr: 9.2%
• 3 Yr: 5.2%
• 5 Yr: 7.9%
• 10 Yr: 5.3% (₹ 1 Lakh would have turned to 1.68 Lakhs)

Expense Ratio: 0.72% (Direct plan)

Beta: 0.52 indicating low volatility.

Alpha: -5.69 indicating poor danger adjusted returns.

Our View: This fund nonetheless lags behind many home and world friends. The destructive Alpha suggests the returns haven’t been passable when adjusted for danger. Rising markets might be risky, and this fund’s efficiency displays that inconsistency. Buyers ought to consider whether or not this suits inside their broader portfolio technique.

The above fund additionally a part of our earlier article on 10 Worst Performing Mutual Funds in final 3 years.

#8 – Franklin Asian Fairness Fund – 10-Yr CAGR Return: 6.0%

Funding Goal: Invests in corporations throughout Asia (excluding Japan) for capital appreciation.

Annualised Returns:

• 1 Yr: 9.3%
• 3 Yr: 6.2%
• 5 Yr: 6.1%
• 10 Yr: 6.0% (₹ 1 Lakh would have turned to 1.78 Lakhs)

Expense Ratio: 1.59% (Direct plan)

Beta: 0.65 indicating decrease volatility.

Alpha: -6.37 indicating poor returns for the danger taken.

Our View: The Franklin Asian Fairness Fund supplies publicity to Asian markets (excluding Japan), however its medium to long-term efficiency has been beneath common. Its 1-year returns, the 5-year and 10-year CAGRs stay low between at 6% and 9%. A Beta of 0.65 suggests decrease volatility, however the considerably destructive Alpha (-6.37) signifies poor compensation for the danger taken. Given the inconsistent efficiency of many Asian markets and the fund’s lack of ability to generate sturdy risk-adjusted returns, buyers ought to might evaluation and put money into acceptable funds.

#9 – Invesco India – Invesco Pan European Fairness FoF – 10-Yr CAGR Return: 6.16%

Funding Goal: Invests in corporations throughout Asia (excluding Japan) for capital appreciation.

Annualised Returns:

• 1 Yr: 5.6%
• 3 Yr: 13.7%
• 5 Yr: 15.9%
• 10 Yr: 6.16% (₹ 1 Lakh would have turned to 1.81 Lakhs)

Expense Ratio: 0.58% (Direct plan)

Beta: 0.63 indicating decrease volatility.

Alpha: 2.54 indicating poor returns for the danger taken in comparison with class common (as per Moneycontrol web site).

Our View: Its brief time period and long run efficiency is beneath par whereas 5 12 months CAGR returns are 15.9% which is spectacular. Buyers can evaluation and take a name about such mutual fund schemes.

#10 – Edelweiss ASEAN Fairness Off-shore Fund – 10-Yr CAGR Return: 6.2%

Funding Goal: Invests in corporations throughout Asia (excluding Japan) for capital appreciation.

Annualised Returns:

• 1 Yr: 17.1%
• 3 Yr: 7.4%
• 5 Yr: 11.3%
• 10 Yr: 6.2% (₹ 1 Lakh would have turned to 1.82 Lakhs)

Expense Ratio: 0.58% (Direct plan)

Beta: 0.36 indicating decrease volatility.

Alpha: -2.7 indicating poor returns for the danger taken.

Our View: Its medium time period and long run efficiency is beneath par whereas 1 12 months returns are 17.1% which is nice. Buyers can evaluation and take a name about such mutual fund schemes.

Closing Ideas

You may be questioning what to do in case you have invested in any of those funds. First evaluation whether or not such funds align to your monetary targets, danger urge for food and tenure of funding. Then examine for brief to medium to long run efficiency together with inventory market efficiency beneath which these funds are investing and take an make investments, proceed or exit choice.

Suresh KP is a seasoned monetary professional with over 20 years of expertise. He’s NISM Licensed Funding Adviser and Analysis Analyst. For extra about his experience and certifications, go to About Suresh KP

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