10 Worst Mutual Funds within the Final 6 Months (Could 2026 Replace)

Mutual fund buyers typically chase high performers, however only a few observe constant underperformers. Figuring out such laggards is equally necessary—particularly when market tendencies change sharply. Within the final 6 months (Nov-25 to Apr-26), one sector has clearly disillusioned buyers—Info Expertise (IT). With world tech slowdown considerations, recession fears within the US, and weak earnings outlook, IT-focused mutual funds have seen sharp corrections. On this article, I’ll spotlight 10 worst performing mutual funds within the final 6 months (as of 30-Apr-2026) and what buyers ought to do now.

Discover – 10 Mutual Funds That Gave 14% to 67% Returns in 3 Months (Could replace)

Why IT Mutual Funds Fell Sharply within the Final 6 Months?

Earlier than leaping into the checklist, let’s perceive the important thing causes behind this sharp fall:

• Weak world demand for IT companies
• Slowdown in US financial system impacting Indian IT exports
• Margin stress resulting from rising worker prices
• Diminished deal wins and delayed shopper spending
• Overvaluation correction after robust rally in earlier years

These components have led to constant adverse returns throughout most IT-focused mutual funds.

Checklist of Worst Mutual Funds Primarily based on Final 6 Months Returns (as of 30-Apr-2026)

Here’s a fast snapshot of the worst performing mutual funds primarily based on 6-month returns:

10 Worst Mutual Funds within the Final 6 Months (Could 2026)

Beneath are the worst performing mutual funds primarily based on 6-month returns.

1) HDFC Expertise Fund – Direct Plan

• 3 Months Return: -18.99%
• 6 Months Return: -19.88%
• 1 12 months Return: -14.10%

This fund tops the checklist with the steepest fall within the final 6 months. Being an actively managed sector fund, it’s extremely depending on IT sector efficiency.

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2) Motilal Oswal Digital India Fund – Direct Plan

• 3 Months Return: -12.05%
• 6 Months Return: -18.79%
• 1 12 months Return: -4.78%

Centered on digital and expertise themes, this fund has additionally taken a success resulting from valuation corrections.

3) Bandhan Nifty IT Index Fund – Direct Plan

• 3 Months Return: -23.83%
• 6 Months Return: -18.55%
• 1 12 months Return: -16.95%

4) SBI Nifty IT Index Fund – Direct Plan

• 3 Months Return: -23.76%
• 6 Months Return: -18.46%
• 1 12 months Return: -16.89%

5) Axis Nifty IT Index Fund – Direct Plan

• 3 Months Return: -23.77%
• 6 Months Return: -18.45%
• 1 12 months Return: -16.82%

6) ICICI Prudential Nifty IT Index Fund – Direct Plan

• 3 Months Return: -23.75%
• 6 Months Return: -18.45%
• 1 12 months Return: -16.85%
• 3 12 months Return: 3.6%

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7) Nippon India Nifty IT Index Fund – Direct Plan

• 3 Months Return: -23.73%
• 6 Months Return: -18.44%
• 1 12 months Return: -16.77%

8) DSP Nifty IT Index Fund – Direct Plan

• 3 Months Return: -23.72%
• 6 Months Return: -18.41%

9) Navi Nifty IT Index Fund – Direct Plan

• 3 Months Return: -23.64%
• 6 Months Return: -18.40%
• 1 12 months Return: -16.82%

10) Tata Nifty India Tourism Index Fund – Direct Plan

• 3 Months Return: -2.99%
• 6 Months Return: -18.16%
• 1 12 months Return: -18.46%

That is the one non-IT fund within the checklist, indicating that tourism shares additionally confronted stress in latest months.

Key Observations from the Knowledge

• 8 out of 10 funds are IT/ Tech-focused funds
• Most funds delivered -18% to -20% returns in simply 6 months
• Index funds and energetic funds each carried out poorly
• Brief-term volatility is extraordinarily excessive in sectoral funds

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Ought to You Exit These Mutual Funds Now?

That is the place most buyers make errors.

1) Don’t panic promote

Sector funds are cyclical. What’s underperforming right this moment might outperform tomorrow.

2) Evaluation your funding goal

In case you invested for long-term progress (5–7 years), short-term correction is regular.

3) Keep away from recent lump sum investments now

If the sector continues to stay weak, additional draw back is feasible.

4) SIP buyers can proceed

SIPs assist common prices throughout market corrections.

5) Restrict publicity to sector funds

Ideally, sector funds shouldn’t exceed 10–15% of your total portfolio.

Who Ought to Keep away from These Funds?

• Conservative buyers
• Brief-term buyers (lower than 3 years)
• Traders with low danger tolerance

These funds are appropriate just for high-risk buyers with long-term horizon.

Closing Ideas

The final 6 months clearly spotlight one lesson—sectoral focus will be dangerous.

Whereas IT mutual funds have corrected sharply, it doesn’t imply they’re dangerous investments perpetually. Nevertheless, buyers ought to:

• Diversify throughout sectors
• Keep away from overexposure to thematic funds
• Keep invested with long-term self-discipline

As a substitute of chasing returns, concentrate on asset allocation and danger administration.

Disclaimer

This text is for academic functions solely and shouldn’t be thought of as funding recommendation. Mutual fund investments are topic to market dangers. Please seek the advice of your monetary advisor earlier than making funding choices.

Suresh KP is a seasoned monetary knowledgeable 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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