10 Mutual Funds That Crashed the Most Since Final Diwali (-14% to -17%)

Diwali usually marks a time of recent beginnings and portfolio critiques for traders. As we mild up our houses this festive season, it’s equally vital to assessment which investments have dimmed previously yr. Whereas some mutual funds have delivered extraordinary returns because the final Diwali, a couple of have been on the other aspect — witnessing steep declines and eroding investor wealth. On this article, we spotlight 10 mutual funds that crashed probably the most since final Diwali (November 2024 – October 2025), with 1-year returns starting from -14% to -17%. These funds span throughout IT, momentum, and flexi-cap classes, reflecting how sure themes and sectors have underperformed during the last yr.

Discover 10 Worst Performng Mutual Funds in final 5 years that generated< 2% CAGR returns.

What Are Fairness Mutual Funds?

Fairness mutual funds make investments primarily in shares of corporations. These funds intention to generate long-term capital appreciation however include excessive volatility. Relying on their funding type, they might give attention to sectors (like IT), themes (like momentum), or market caps (like flexi-cap).

Whereas they will generate superior returns throughout bull markets, sector or theme-specific funds can see sharp drawdowns when market cycles reverse, as we see with this yr’s laggards.

How We Recognized These Funds

We utilized a constant screening course of to establish underperforming funds:

• Thought-about all fairness mutual funds, together with sectoral and thematic classes.

• Targeted solely on Direct Plans (Progress choices) to make sure return consistency.

• Analyzed 1-year efficiency from 20-Oct-2024 to 19-Oct-2025.

• Excluded commodities (Gold/Silver), hybrid, arbitrage, and debt-oriented funds.

• Knowledge as on 19-Oct-2025

🔻 High 10 Mutual Funds That Crashed the Most Since Final Diwali (-14% to -17%)

Deep Dive into Every Mutual Fund

#1 – Samco Flexi Cap Fund (-17.19%)

Fund Goal:
To speculate throughout large-cap, mid-cap, and small-cap corporations with a versatile allocation based mostly on market alternatives.

Annualised Returns:

• 1 Yr: -17.19%

• 3 Yr: 3.81%

• 5 Yr: Not Relevant

• 10 Yr: Not Relevant

Who Can Make investments:

Danger Elements:

Earlier we analysed this fund amongst 10 Mutual Funds that Crashed the Most Since Final Gandhi Jayanthi.

#2 – Axis Nifty IT Index Fund (-16.60%)

Fund Goal:
To copy the efficiency of the Nifty IT Index, which represents prime know-how corporations in India.

Annualised Returns:

• 1 Yr: -16.60%

• 3 Yr: Not Relevant

Who Can Make investments:

Danger Elements:

#3 – Bandhan Nifty IT Index Fund (-16.60%)

Fund Goal:
To generate returns that correspond to the efficiency of the Nifty IT Index.

Annualised Returns:

• 1 Yr: -16.60%

• 3 Yr: Not Relevant

Who Can Make investments:

Danger Elements:

#4 – ICICI Prudential Nifty IT Index Fund (-16.50%)

Fund Goal:
To reflect returns of Nifty IT Index whereas minimizing monitoring error.

Annualised Returns:

• 1 Yr: -16.50%

• 3 Yr: 9.36%

Who Can Make investments:

Danger Elements:

IT Index has been down in the previous couple of months the place we lined this fund too in 10 Mutual Funds That Crashed the Most within the Final 6 Months in 2025.

#5 – Nippon India Nifty IT Index Fund (-16.46%)

Fund Goal:
To offer returns carefully akin to the Nifty IT Index efficiency.

Annualised Returns:

Who Can Make investments:

Danger Elements:

#6 – Navi Nifty IT Index Fund (-16.40%)

Fund Goal:
To trace the Nifty IT Index with minimal monitoring error.

Annualised Returns:

Who Can Make investments:

Danger Elements:

#7 – Mirae Asset Nifty Smallcap 250 Momentum High quality 100 ETF FoF (-14.85%)

Fund Goal:
To put money into the Mirae Asset Nifty Smallcap 250 Momentum High quality 100 ETF, specializing in small-cap shares with excessive momentum and high quality parameters.

Annualised Returns:

Who Can Make investments:

Danger Elements:

#8 – Quant Manufacturing Fund (-13.91%)

Fund Goal:
To put money into manufacturing and industrial sector corporations anticipated to profit from India’s manufacturing progress.

Annualised Returns:

Who Can Make investments:

Danger Elements:

#9 – Nippon India Nifty 500 Momentum 50 Index Fund (-13.89%)

Fund Goal:
To copy the Nifty 500 Momentum 50 Index, which captures probably the most trending shares inside the Nifty 500.

Annualised Returns:

Who Can Make investments:

Danger Elements:

The underlying index has generated superior returns earlier. We lined in particulars on this article at 6 Momentum Index Mutual Funds (Underlying index with 30% to 40% CAGR returns in final 5 years).

#10 – Quant Enterprise Cycle Fund (-13.75%)

Fund Goal:
To speculate dynamically throughout sectors based mostly on enterprise cycle developments.

Annualised Returns:

Who Can Make investments:

Danger Elements:

Key Takeaways

• IT Sector Drag: Six out of the ten worst-performing funds are IT-based, reflecting international slowdown in know-how demand.

• Momentum Funds Hit: Momentum and small-cap methods confronted sharp pullbacks.

• Diversification is Key: Overexposure to 1 sector or theme could cause steep losses.

Conclusion

Whereas these funds have delivered detrimental returns since final Diwali, short-term corrections are part of fairness investing. Buyers ought to keep away from making panic-driven choices based mostly on 1-year returns. As an alternative, give attention to diversification, long-term objectives, and constant assessment of portfolio publicity.

When you maintain any of those funds, assess whether or not their underlying technique aligns along with your funding horizon and danger profile. Sectoral and thematic funds can bounce again shortly when cycles flip, however persistence and self-discipline are key.

Suresh KP is a seasoned monetary skilled with over 23 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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