10 Worst Performing Mutual Funds within the Final 20 Years (4.8% to 11.9% CAGR Returns)

Over the past 20 years, the Indian fairness market has gone by vital phases – from pre-2008 bull runs, the worldwide monetary disaster, a number of election cycles, demonetization, GST rollout, COVID-19 pandemic, and the latest tech-led bull market. Regardless of this, some mutual funds have delivered sub-par returns in comparison with broader benchmarks. On this article, we spotlight the 10 Worst Performing Mutual Funds within the Final 20 Years (as of 4-July-2025) which have delivered between 4.8% to 11.9% CAGR returns.

Traders also can test 10 Mutual Fund Schemes with 20-Yr Returns Between 1775% and 2002%.

How We Recognized These Worst Performing Mutual Funds?

• Thought of solely fairness mutual funds together with largecap, flexicap, thematic, sectoral and worldwide funds.
• ETFs and Index Funds have been included solely in instances of very low long-term returns.
• Sorted mutual funds based mostly on their 20-year CAGR returns.
• Solely common plans thought-about as direct plans weren’t obtainable 20 years in the past.
• Used knowledge from ValueResearchOnline and MoneyControl as of 4-July-2025.
• There are over 120 fairness mutual funds which have accomplished 20 years of efficiency historical past. From these, we’ve got picked the bottom-10 funds based mostly on 20-year CAGR returns.
• These backside 10 funds generated between 4.8% to 11.9% CAGR returns over 20 years.
• Nearly all of different mutual funds have delivered returns within the vary of 12% to twenty% CAGR.
• Even the top-50 fairness mutual funds have delivered over 16% CAGR returns over the past 20 years, highlighting the numerous underperformance of the funds listed on this article.

Checklist of 10 Worst Performing Mutual Funds within the Final 20 Years

Fund Evaluation and Insights of those Worst Performing Mutual Funds within the Final 20 Years

Lets get into particular person mutual fund scheme insights.

#1 – LIC MF Kids’s Fund – 20-Yr CAGR: 4.8%

• Goal: Targets long-term funding for youngsters’s schooling and different wants.
• Returns:
  • 3 Yr: 14.6%
  • 5 Yr: 14.2%
  • 10 Yr: 8.4%
  • 15 Yr: 7.7%
  • 20 Yr: 4.8%
• Our View: Regardless of respectable short-term returns, the long-term 20-year CAGR is under FD returns. Excessive expense ratio and conservative asset combine affected compounding.

#2 – Sundaram International Model Theme FoF – 20-Yr CAGR: 8.8%

• Goal: Invests in international corporations with sturdy model fairness.
• Returns:
  • 3 Yr: 18.5%
  • 5 Yr: 14.0%
  • 10 Yr: 9.8%
  • 15 Yr: 9.4%
  • 20 Yr: 8.8%
• Our View: Thematic funds are likely to underperform over lengthy durations attributable to cyclical traits. Robust manufacturers don’t all the time translate into constant returns.

There are 7 Mutual Funds that Turned ₹ 1 Lakh to ₹ 5 Lakhs in 5 years.

#3 – JM Giant Cap Fund – 20-Yr CAGR: 10.4%

• Goal: Invests predominantly in largecap Indian corporations.
• Returns:
  • 3 Yr: 20.4%
  • 5 Yr: 18.3%
  • 10 Yr: 10.7%
  • 15 Yr: 10.2%
  • 20 Yr: 10.4%
• Our View: Current returns have improved, however the 20-year efficiency nonetheless lags peer funds and indices.

#4 – UTI Kids’s Fairness Fund – 20-Yr CAGR: 11.2%

• Goal: Lengthy-term wealth creation for youngsters’s future by fairness publicity.
• Returns:
  • 3 Yr: 17.7%
  • 5 Yr: 19.9%
  • 10 Yr: 12.3%
  • 15 Yr: 12.1%
  • 20 Yr: 11.2%
• Our View: Robust short- and mid-term efficiency, however modest long-term returns dragged down by conservative early allocations.

#5 – LIC MF Nifty 50 Index Plan – 20-Yr CAGR: 11.2%

• Goal: Mirrors the efficiency of Nifty 50 index.
• Returns:
  • 3 Yr: 17.3%
  • 5 Yr: 19.1%
  • 10 Yr: 11.4%
  • 15 Yr: 10.9%
  • 20 Yr: 11.2%
• Our View: Index technique has delivered however points like excessive monitoring error and fund administration inefficiencies affected long-term returns.

Have you learnt that there are 5 Index Mutual Funds with over 30% CAGR within the final 3 years?

#6 – LIC MF Flexi Cap Fund – 20-Yr CAGR: 11.3%

• Goal: Invests throughout massive, mid and small cap shares.
• Returns:
  • 3 Yr: 17.5%
  • 5 Yr: 18.2%
  • 10 Yr: 10.3%
  • 15 Yr: 10.5%
  • 20 Yr: 11.3%
• Our View: Frequent portfolio modifications and lack of technique consistency diminished its potential to beat friends within the flexicap house.

#7 – Taurus Giant Cap Fund – 20-Yr CAGR: 11.3%

• Goal: Invests in largecap shares for long-term progress.
• Returns:
  • 3 Yr: 20.2%
  • 5 Yr: 18.8%
  • 10 Yr: 9.4%
  • 15 Yr: 9.5%
  • 20 Yr: 11.3%
• Our View: Though near-term efficiency is encouraging, weak previous efficiency weighs down long-term CAGR.

#8 – LIC MF BSE Sensex Index Plan – 20-Yr CAGR: 11.9%

• Goal: Replicates the BSE Sensex Index efficiency.
• Returns:
  • 3 Yr: 16.5%
  • 5 Yr: 18.4%
  • 10 Yr: 11.4%
  • 15 Yr: 11.0%
  • 20 Yr: 11.9%
• Our View: Efficiency mirrors the index decently, however administration inefficiencies and low AUM possible created monitoring errors.

Have you learnt 10 Poor Performing Mutual Funds in final 15 years generated 4.4% to 9.0% CAGR Returns.

#9 – JM Worth Fund – 20-Yr CAGR: 11.9%

• Goal: Targeted on worth investing alternatives in Indian equities.
• Returns:
  • 3 Yr: 30.1%
  • 5 Yr: 28.1%
  • 10 Yr: 16.3%
  • 15 Yr: 12.3%
  • 20 Yr: 11.9%
• Our View: Robust latest cycle efficiency. However underwhelming efficiency for a few years reduces its long-term common.

#10 – LIC MF Giant Cap Fund – 20-Yr CAGR: 11.9%

• Goal: Invests in largecap shares throughout sectors.
• Returns:
  • 3 Yr: 17.3%
  • 5 Yr: 18.7%
  • 10 Yr: 10.8%
  • 15 Yr: 11.2%
  • 20 Yr: 11.9%
• Our View: Average efficiency throughout timeframes. Whereas constant, it did not outperform broader indices or high friends over twenty years.

Ultimate Ideas

Some mutual funds listed right here could have improved efficiency in recent times, however their long-term monitor file stays poor. Earlier than persevering with with such funds, traders ought to ask:

• Does this fund meet my long-term targets?
• Is its low return a one-time subject or a recurring downside?
• Are there better-performing alternate options in the identical class?

At all times consider efficiency throughout 3-year, 5-year, 10-year and 20-year intervals. Exit choices ought to take into account long-term consistency and never simply latest uptick in returns.

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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