The Indian inventory market carried out nicely in 2023 and 2024 and took some correction in the previous few months. Nifty generated 12% returns within the final 3 years. Every part will not be rosy. There are a number of mutual funds that generated beneath 5% returns too. You is likely to be questioning when Nifty is constructive previously 3 years and majority of the energetic funds generated double digit returns, how come there are mutual funds producing unfavorable returns or low returns. Let’s get into extra particulars about such funds. On this article, we’ll focus on the 10 Worst Performing Mutual Funds within the final 3 years (8-Feb-2022 to 7-Feb-2025).
How We Recognized 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 our evaluation.
- We filtered the underside 10 funds based mostly on their 3-year returns.
- These 10 funds generated minus 3% to constructive 3% returns within the final 3 years. Means if one would have stored the cash in a easy financial institution financial savings account that generates between 3% to six% with zero danger, they might have made larger cash with peace of thoughts.
If you’re not conscious of mutual fund classes, you possibly can discover various kinds of mutual funds in India.
Let’s take a deeper take a look at them.
Record of 10 Worst Performing Mutual Funds within the Final 3 Years
Listed here are the ten worst-performing mutual funds based mostly on their 3-year returns:
#1 – Edelweiss Larger China Fairness Off-shore Fund – 3-Yr Return: -3.24%
#2 – Mahindra Manulife Asia Pacific REITs FoF – 3-Yr Return: -3.0%
#3 – Axis Larger China Fairness FoF – 3-Yr Return: -1.5%
#4 – Edelweiss Rising Markets Alternatives Fairness Offshore Fund – 3-Yr Return: 0.04%
#5 – Kotak Worldwide REIT FoF – 3-Yr Return: 0.08%
#6 – Franklin Asian Fairness Fund – 3-Yr Return: 0.5%
#7 – HSBC World Rising Markets Fund – 3-Yr Return: 1.6%
#8 – PGIM India Rising Markets Fairness Fund – 3-Yr Return: 2.0%
#9 – Kotak World Rising Market Fund – 3-Yr Return: 2.3%
#10 – HSBC Brazil Fund – 3-Yr Return: 2.4%
Deep Dive into These Worst Performing Mutual Funds
Let’s discover these funds intimately, their targets, efficiency, and our view.
#1 – Edelweiss Larger China Fairness Off-shore Fund – 3-Yr Return: -3.24%
Funding Goal: To offer long run capital appreciation by investing in JPMorgan Funds – Larger China Fund, an fairness fund which invests primarily in a diversified portfolio of firms which might be domiciled in, or finishing up the principle a part of their financial exercise in, a rustic of Larger China area.
Absolute Returns of the fund
- 1-Yr Return: 27.2%
- 3-Yr Return: -10.8%
- 5-Yr Return: 23.8%
- 10-Yr Return: 128.5%
Annualised Returns of the fund
- 1-Yr Return: 27.2%
- 3-Yr Return: -3.24%
- 5-Yr Return: 4.3%
- 10-Yr Return: 8.6%
Our View:
- The fund has confronted volatility on account of China’s financial slowdown and regulatory points within the final 3 years, nonetheless recovering now within the final 1 yr.
- If you’re holding this fund, it’s advisable to overview its efficiency and take into account switching to a well-performing worldwide fairness fund.
#2 – Mahindra Manulife Asia Pacific REITs FoF – 3-Yr Return: -3.0%
Funding Goal: The scheme seeks to supply long run capital appreciation by investing predominantly in models of Manulife World Fund Asia Pacific REIT Fund, an abroad fund primarily investing in actual property funding trusts (REITs) within the Asia Pacific ex-Japan area.
Absolute Returns of the fund
- 1-Yr Return: 1.2%
- 3-Yr Return: -8.8%
- Return since inception: -14.6%
Annualised Returns of the fund
- 1-Yr Return: 1.2%
- 3-Yr Return: -3.0%
- Return since inception: -4.6%
Our View:
- That is an world fund and underlying fund invests primarily in firms in REITs in Asia Pacific ex-Japan.
- This fund has generated unfavorable returns since inception.
- The REIT sector has struggled on account of rising rates of interest and financial slowdown.
- Buyers ought to reassess their holdings and take into account various actual property funds with higher observe data.
#3 – Axis Larger China Fairness FoF – 3-Yr Return: -1.5%
Funding Goal: To offer long run capital appreciation by predominatingly investing in models of Schroder Worldwide Choice Fund Larger China, a fund that goals to supply capital development by investing in fairness and fairness associated securities of Individuals’s Republic of China, Hong Kong SAR and Taiwan firms.
Absolute Returns of the fund
- 1-Yr Return: 25.2%
- 3-Yr Return: -4.5%
- Return since inception: -21.3%
Annualised Returns of the fund
- 1-Yr Return: 25.2%
- 3-Yr Return: -1.5%
- Return since inception: -5.8%
Our View:
- Ongoing geopolitical tensions and financial considerations have impacted returns.
- Buyers ought to monitor the fund carefully and discover different rising market funds.
#4 – Edelweiss Rising Markets Alternatives Fairness Fund – 3-Yr Return: 0.04%
Funding Goal: The first funding goal of the scheme is to hunt to supply long run capital development by investing predominantly within the JPMorgan Funds – Rising Markets Alternatives Fund, an fairness fund which invests primarily in an aggressively managed portfolio of rising market firms.
Absolute Returns of the fund
- 1-Yr Return: 12.6%
- 3-Yr Return: 0.1%
- 5-Yr Return: 17.3%
- 10-Yr Return: 73.3%
Annualised Returns of the fund
- 1-Yr Return: 12.6%
- 3-Yr Return: 0.04%
- 5-Yr Return: 3.2%
- 10-Yr Return: 5.6%
Our View:
- The fund has underperformed in comparison with its friends.
- There’s nothing unsuitable with the fund which invests based mostly on funding goal, nonetheless the underlying markets has been below performing.
- This fund couldn’t double cash in 10 years time-frame. Even when we take into account newest Kisan Vikas Patra Curiosity Charges (that are decrease in comparison with few years again), your funding would have doubled in lower than 10 years.
- Take into account reallocating to extra secure and higher-performing worldwide funds.
#5 – Kotak Worldwide REIT FoF – 3-Yr Return: 0.08%
Funding Goal: To offer long-term capital appreciation and revenue by investing in models of SMAM ASIA REIT Sub Belief fund and/or the opposite related abroad REIT funds.
Absolute Returns of the fund
- 1-Yr Return: 5.5%
- 3-Yr Return: 0.25%
- Return since inception: -0.07%
Annualised Returns of the fund
- 1-Yr Return: 5.5%
- 3-Yr Return: 0.08%
- Return since inception: -0.02%
Our View:
- This fund invests primarily in firms in REITs in APAC Area.
- The fund’s efficiency has been weak on account of world actual property sector challenges.
- This fund generated minus 0.02% annualised returns since inception.
- Buyers ought to take into account switching to better-performing REIT-focused funds.
#6 – Franklin Asian Fairness Fund – 3-Yr Return: 0.5%
Funding Goal: To offer medium to long-term capital appreciation by investing in Asian firms and sectors. The fund excludes Japan from its investments.
Absolute Returns of the fund
- 1-Yr Return: 19.1%
- 3-Yr Return: 1.7%
- 5-Yr Return: 19.9%
- 10-Yr Return: 94.4%
Annualised Returns of the fund
- 1-Yr Return: 19.1%
- 3-Yr Return: 0.5%
- 5-Yr Return: 3.7%
- 10-Yr Return: 6.8%
Our View:
- The fund has lagged behind many friends within the Asian fairness phase.
- Buyers could wish to take a look at different funds with stronger observe data.
Buyers also needs to discover Finest Worldwide Mutual Funds for 2025 to take a position based mostly on their danger urge for food.
#7 – HSBC World Rising Markets Fund – 3-Yr Return: 1.6%
Funding Goal: This fund invests in rising market equities globally.
Absolute Returns of the fund
- 1-Yr Return: 20%
- 3-Yr Return: 5.0%
- 5-Yr Return: 31.5%
- 10-Yr Return: 84.4%
Annualised Returns of the fund
- 1-Yr Return: 20%
- 3-Yr Return: 1.6%
- 5-Yr Return: 5.6%
- 10-Yr Return: 6.3%
Our View:
- The fund’s efficiency has been inconsistent.
- Buyers ought to monitor and take into account various world funds.
#8 – PGIM India Rising Markets Fairness Fund – 3-Yr Return: 2.0%
Funding Goal: This fund focuses on rising markets exterior India.
Absolute Returns of the fund
- 1-Yr Return: 24.6%
- 3-Yr Return: 5.9%
- 5-Yr Return: 14.2%
- 10-Yr Return: 49.4%
Annualised Returns of the fund
- 1-Yr Return: 24.6%
- 3-Yr Return: 2.0%
- 5-Yr Return: 2.7%
- 10-Yr Return: 4.1%
Our View:
- The fund’s returns have been subpar.
- Take into account switching to a extra secure rising markets fund.
#9 – Kotak World Rising Market Fund – 3-Yr Return: 2.3%
Funding Goal: This fund invests in world rising markets.
Absolute Returns of the fund
- 1-Yr Return: 10.0%
- 3-Yr Return: 7.1%
- 5-Yr Return: 38.0%
- 10-Yr Return: 80.6%
Annualised Returns of the fund
- 1-Yr Return: 10.0%
- 3-Yr Return: 2.3%
- 5-Yr Return: 6.6%
- 10-Yr Return: 6.0%
Our View:
- The fund has delivered very low returns. Even a easy financial institution FD would have fetched larger returns
- Buyers ought to consider efficiency towards stronger world funds.
#10 – HSBC Brazil Fund – 3-Yr Return: 2.4%
Funding Goal: to supply long run capital appreciation by investing predominantly in models/shares of HSBC World Funding Funds (HGIF) Brazil Fairness Fund.
This was the highest fund figured in our final month article on Worst Performing Mutual Funds in 1 Yr.
Absolute Returns of the fund
- 1-Yr Return: -12.3%
- 3-Yr Return: 7.5%
- 5-Yr Return: -27.0%
- 10-Yr Return: 6.3%
Annualised Returns of the fund
- 1-Yr Return: -12.3%
- 3-Yr Return: 2.4%
- 5-Yr Return: -6.1%
- 10-Yr Return: 0.6%
Our View:
- This fund invests in Brazil firms and Brazil’s market volatility has impacted returns.
- This fund generated 2% annualised returns since inception.
- Buyers ought to overview and take into account extra diversified rising market funds.
Closing Ideas
If you’re invested in any of those mutual funds, overview their efficiency and take into account higher mutual funds for long-term wealth creation in 2025 based mostly in your danger urge for food, monetary targets and the way lengthy you wish to put money into them.
Uncover extra from Myinvestmentideas.com
Subscribe to get the most recent posts despatched to your electronic mail.
