Whereas buyers typically chase top-performing mutual funds to develop their wealth, it’s equally vital to grasp which funds have struggled. The final one yr (2024–2025) has seen vital volatility in fairness markets, particularly in know-how and small-cap segments. Some funds that had been beforehand widespread or newly launched have taken a significant beating. On this article, we spotlight the 10 worst performing mutual funds previously one yr in 2025, with returns starting from -16% to -12%.
How We Filtered These Funds?
To determine these underperforming schemes, we adopted a transparent choice methodology:
- Thought-about all fairness mutual funds of Direct Plans listed on AMFI.
- Filtered solely those who gave detrimental returns within the final one yr.
- From these, we chosen the highest 10 worst performers, all exhibiting returns between -16% and -12%.
- Apparently, most of those are comparatively new funds, launched inside the final 3 years, and plenty of of them are centered on the IT or small-cap segments.
- It is very important assessment your funds periodically, in any other case you’d find yourself in investing like we indicated in our worst performing mutual funds within the final 20 years.
High 10 Worst Performing Mutual Funds within the final 1 yr in 2025
- Samco Flexi Cap Fund – 1-Yr Return: -16.4%
- Bandhan Nifty IT Index Fund – 1-Yr Return: -14.2%
- Axis Nifty IT Index Fund – 1-Yr Return: -14.2%
- ICICI Prudential Nifty IT Index Fund – 1-Yr Return: -14.1%
- Nippon India Nifty IT Index Fund – 1-Yr Return: -14.0%
- Navi Nifty IT Index Fund – 1-Yr Return: -14.0%
- Mirae Asset Nifty Smallcap 250 Momentum High quality 100 ETF FoF – 1-Yr Return: -12.8%
- DSP Nifty Smallcap250 High quality 50 Index Fund – 1-Yr Return: -12.2%
- Quant Teck Fund – 1-Yr Return: -12.0%
- Samco ELSS Tax Saver Fund – 1-Yr Return: -12.0%
High 10 Worst Performing Mutual Funds in final 1 Yr
1. Samco Flexi Cap Fund
Fund Goal: The fund goals to take a position throughout market capitalizations—giant, mid, and small caps—looking for long-term capital appreciation. Nonetheless, concentrated bets and market volatility have hit efficiency exhausting previously yr.
Efficiency Snapshot:
- 1-Yr CAGR: -16.4%
- 3-Yr CAGR: 2.7%
Who Can Make investments: Appropriate for buyers with a long-term horizon (5+ years) who can tolerate excessive volatility and need diversified publicity throughout market caps.
Danger Components: Excessive publicity to mid and small caps makes it susceptible to market downturns and focus threat.
This fund proceed to underperform like we indicated in our 10 Mutual Funds That Crashed the Most Since Final Diwali (-14% to -17%).
2. Bandhan Nifty IT Index Fund
Fund Goal: This passive index fund mirrors the efficiency of the Nifty IT Index. The IT sector confronted earnings strain and valuation correction, resulting in sharp underperformance.
Efficiency Snapshot:
Who Can Make investments: Appropriate for buyers who consider within the long-term development of India’s IT sector and like passive investing.
Danger Components: Extremely concentrated in a single sector; world demand slowdown can closely impression returns.
3. Axis Nifty IT Index Fund
Fund Goal: This fund tracks the Nifty IT Index and offers publicity to main know-how corporations. The sector’s world demand slowdown and excessive valuations damage returns.
Efficiency Snapshot:
Who Can Make investments: Supreme for buyers in search of a centered IT publicity and keen to experience out sector volatility.
Danger Components: Sectoral threat, dependency on world IT demand, and foreign money fluctuations.
Other than tariff and coverage uncertainties, IT mutual funds are underperforming attributable to a worldwide slowdown in tech spending, margin pressures from rising prices, foreign money fluctuations, and excessive valuations amid weak earnings development. We might see this in 10 Mutual Funds That Crashed the Most within the Final 6 Months in 2025.
4. ICICI Prudential Nifty IT Index Fund
Fund Goal: Seeks to copy the Nifty IT Index. Regardless of an honest 3-year return, latest correction in tech shares weighed closely on short-term efficiency.
Efficiency Snapshot:
- 1-Yr CAGR: -14.1%
- 3-Yr CAGR: 8.7%
Who Can Make investments: Greatest for buyers with moderate-to-high threat urge for food and a perception in long-term IT development.
Danger Components: Sectoral dependence, excessive volatility, and sensitivity to world financial tendencies.
5. Nippon India Nifty IT Index Fund
Fund Goal: This fund goals to generate returns consistent with the Nifty IT Index. Nonetheless, publicity to large-cap IT shares like Infosys, Wipro, and TCS led to short-term underperformance.
Efficiency Snapshot:
Who Can Make investments: Appropriate for buyers in search of passive IT publicity by a trusted AMC.
Danger Components: Restricted diversification; efficiency tied carefully to IT sector dynamics.
6. Navi Nifty IT Index Fund
Fund Goal: One other IT index fund that carefully tracks Nifty IT. The fund’s returns had been dragged down by sectoral weak point and world know-how spending cuts.
Efficiency Snapshot:
Who Can Make investments: Appropriate for buyers comfy with sector-specific publicity and index-based investing.
Danger Components: Sectoral and world publicity threat; efficiency can swing based mostly on tech cycles.
Traders may discover – 10 Worst Performing Mutual Funds within the Final 15 Years (4.4% to 9.0% CAGR Returns).
7. Mirae Asset Nifty Smallcap 250 Momentum High quality 100 ETF FoF
Fund Goal: This fund invests in an ETF monitoring small-cap and momentum shares. The excessive volatility in small-cap shares through the yr impacted efficiency severely.
Efficiency Snapshot:
Who Can Make investments: Appropriate for aggressive buyers looking for small-cap momentum publicity with a long-term horizon.
Danger Components: Excessive volatility, liquidity threat, and sharp drawdowns in small-cap segments.
Examine 10 Worst Performing Mutual Funds within the Final 5 Years (1.7% to 9.1% CAGR Returns).
8. DSP Nifty Smallcap250 High quality 50 Index Fund
Fund Goal: Designed to trace a basket of high quality small-cap shares. Nonetheless, the small-cap correction and profit-booking by buyers hit returns.
Efficiency Snapshot:
Who Can Make investments: Appropriate for long-term buyers seeking to capitalize on small-cap development potential.
Danger Components: Excessive volatility, potential liquidity points, and sector focus dangers.
9. Quant Teck Fund
Fund Goal: A thematic know-how fund launched to profit from digital transformation tendencies. The tech sell-off and correction in IT valuations led to double-digit losses.
Efficiency Snapshot:
Who Can Make investments: Supreme for thematic buyers who need publicity to India’s know-how innovation theme.
Danger Components: Theme focus, world tech valuation dangers, and short-term cyclicality.
10. Samco ELSS Tax Saver Fund
Fund Goal: This ELSS fund goals for long-term capital appreciation by diversified fairness publicity. Nonetheless, being a comparatively new scheme, it has struggled amid unstable markets.
Efficiency Snapshot:
Who Can Make investments: Appropriate for buyers in search of tax-saving choices below Part 80C and long-term wealth creation.
Danger Components: Market threat, restricted observe report, and publicity to unstable mid/small-cap shares.
Abstract of Efficiency
| Fund Title | 1 Yr Return | 3 Yr Return | 5 Yr Return |
|---|---|---|---|
| Samco Flexi Cap Fund | -16.4% | 2.7% | — |
| Bandhan Nifty IT Index Fund | -14.2% | — | — |
| Axis Nifty IT Index Fund | -14.2% | — | — |
| ICICI Prudential Nifty IT Index Fund | -14.1% | 8.7% | — |
| Nippon India Nifty IT Index Fund | -14.0% | — | — |
| Navi Nifty IT Index Fund | -14.0% | — | — |
| Mirae Asset Nifty Smallcap 250 Momentum High quality 100 ETF FoF | -12.8% | — | — |
| DSP Nifty Smallcap250 High quality 50 Index Fund | -12.2% | — | — |
| Quant Teck Fund | -12.0% | — | — |
| Samco ELSS Tax Saver Fund | -12.0% | — | — |
Conclusion
Whereas mutual funds are long-term wealth creation instruments, short-term underperformance—particularly in sure sectors—shouldn’t discourage buyers. A lot of the funds listed below are sector-specific or new schemes that confronted market headwinds. Traders ought to at all times deal with long-term efficiency, diversification, and consistency earlier than making any resolution. Keep away from reacting to short-term losses; as an alternative, align your investments together with your long-term monetary objectives.
