5 Worst Performing Mutual Funds within the final 1 Yr [-24% to 0%]

Mutual Funds generated good wealth in 2023 and 2024; nonetheless, they skilled a correction in the previous couple of months. Whereas there are over 750 fairness mutual funds, a number of have underperformed even after the bull run that ended just a few months in the past. On this article we’d speak about 5 Worst Performing Mutual Funds within the final 1 yr (10-Jan-2024 to 9-Jan-2025) that generated destructive returns.

Additionally Learn:

How we filtered these worst performing mutual funds within the final 1 yr?

• We thought-about all fairness mutual funds together with sector funds and thematic mutual funds. Nonetheless, we excluded ETFs from this record, leaving us with a dataset of over 750 mutual funds.
• Filtered funds that generated lowest returns within the final 1 yr.
• We obtained 5 funds that had generated destructive returns between minus 24% to 0%. The returns are for direct plans. Means the returns for normal plans would have additional affect.
• You is perhaps questioning when Nifty has generated 8.5% returns previously yr and majority of the energetic funds generated double digit returns, how come there are mutual funds producing destructive returns or zero returns. Let’s get into extra particulars about such funds.
• In case you are new to mutual funds, you may examine our Mutual Fund Learners Information.

Checklist of Prime 5 Worst Performing Mutual Funds within the final 1 yr

Right here is the record of 5 Worst Performing Mutual Funds within the final 1 yr.

#1 – HSBC Brazil Fund – 1 Yr Return – Minus 24.0%

#2 – Mahindra Manulife Asia Pacific REITs FoF – 1 Yr Return – Minus 5.6%

#3 – Invesco India Pan European Fairness Fund of Fund – 1 Yr Return – Minus 2.5%

#4 – DSP World Mining Fund – 1 Yr Return – Minus 0.4%

#5 – Kotak Worldwide REIT FOF – 1 Yr Return – 0%

You may additionally like: Finest Mid Cap Funds in India for 2025

5 Worst Performing Mutual Funds within the final 1 yr – Deep Dive into these funds

Let’s get into extra particulars on the funds funding goal, efficiency and our view about these funds.

#1 – HSBC Brazil Fund – 1 Yr Return – Minus 24.0%

Funding Goal:

The first funding goal of the Scheme is to offer long run capital appreciation by investing predominantly in items/shares of HSBC World Funding Funds (HGIF) Brazil Fairness Fund.

Efficiency Particulars

Absolute Returns of the fund

• 1-Yr Return: minus 24.0%
• 3-Yr Return: minus 7.2%
• 5-Yr Return: minus 9.9%
• 10-Yr Return: minus 11.9%
• Return since inception: minus 36.4%

Annualised Returns of the fund

• 1-Yr Return: minus 24.0%
• 3-Yr Return: 3.2%
• 5-Yr Return: minus 9.5%
• 10-Yr Return: minus 1.2%
• Return since inception: minus 3.7%

Our View:

• That is a global fund, and its underlying fund invests primarily in Brazilian firms.
• This fund has generated minus 3.7% annualised return since inception.

In case you are invested in such funds, contemplate reviewing their efficiency and exiting in the event that they now not align together with your monetary targets.

#2 – Mahindra Manulife Asia Pacific REITs FoF – 1 Yr Return – Minus 5.6%

Funding Goal:

The scheme seeks to offer long run capital appreciation by investing predominantly in items 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.

Efficiency Particulars

Absolute Returns of the fund

• 1-Yr Return: minus 5.6%
• 2-Yr Return: minus 10.4%
• Return since inception: minus 16.5%

Annualised Returns of the fund

• 1-Yr Return: minus 5.6%
• 2-Yr Return: minus 3.6%
• Return since inception: minus 5.4%

Our View:

• That is a global fund and underlying fund invests primarily in firms in REITs in Asia Pacific ex-Japan.
• The underlying fund prime holdings are Hyperlink REIT, Ascendas REIT, Capitaland Built-in business belief and Frasers Logistics and business belief.
• This fund has generated minus 5.4% annualised return since inception.
• In case you are invested in such funds, contemplate reviewing their efficiency and exiting in the event that they now not align together with your monetary targets.

#3 – Invesco India Pan European Fairness Fund of Fund – 1 Yr Return – Minus 2.5%

Funding Goal:

To generate capital appreciation by investing predominantly in items of Invesco Pan European Fairness Fund, an abroad fairness fund which invests primarily in fairness securities of European firms with an emphasis on bigger firms.

Efficiency Particulars

Absolute Returns of the fund

• 1-Yr Return: minus 2.5%
• 3-Yr Return: 15.2%
• 5-Yr Return: 40.4%
• 10-Yr Return: 86.1%
• Return since inception: 69.6%

Annualised Returns of the fund

• 1-Yr Return: minus 2.5%
• 3-Yr Return: 4.8%
• 5-Yr Return: 7.0%
• 10-Yr Return: 6.4%
• Return since inception: 4.9%

Our View:

• That is a global fund and underlying fund invests primarily in firms in European firms.
• This fund has generated 4.9% annualised return since inception. Even a protected financial institution FD has generated over 7% annualised returns within the final 10 years. Do we have to take danger for such low returns?
• In case you are invested in such funds, contemplate reviewing their efficiency and exiting in the event that they now not align together with your monetary targets.

Additionally Learn: 10 Finest Mutual Funds to speculate for long run in 2025

#4 – DSP World Mining Fund – 1 Yr Return – Minus 0.4%

Funding Goal:

The fund would predominantly spend money on items of BlackRock World Funds – World Mining Fund. The underlying fund invests primarily in main worldwide firms within the mining and metals sector.

Efficiency Particulars

Absolute Returns of the fund

• 1-Yr Return: minus 0.4%
• 3-Yr Return: 4.8%
• 5-Yr Return: 70.8%
• 10-Yr Return: 127.5%

Annualised Returns of the fund

• 1-Yr Return: minus 0.4%
• 3-Yr Return: 1.57%
• 5-Yr Return: 11.2%
• 10-Yr Return: 8.5%

Our View:

• That is a global fund and underlying fund invests primarily in main worldwide firms within the mining and metals sector.
• Its underlying Blackrock world mining fund top-10 share holdings are Glencore PLC, Rio Tinto PLC, Agnico Eagle, BHP Group, Freeport, Anglo American, Wheaton, Ivanhoe, Teck Assets and Barrick Gold Corp.
• This fund has generated 3.4% annualised returns since inception.
• Final yr, we indicated that as per latest E&Y report, mining and metals sector will encounter a fancy working atmosphere in 2024, with quite a few challenges forward. We might see the affect within the fund efficiency within the final 1 yr too.
• When you’ve got already invested in such mutual funds, you might maintain for some extra time. Keep away from making recent investments into such funds for now. When you’ve got created SIP in such funds, you might pause / divert to different fairness mutual funds for now.

#5 – Kotak Worldwide REIT FOF – 1 Yr Return – 0%

Funding Goal:

The funding goal of the scheme is to offer long-term capital appreciation and revenue by investing in items of SMAM ASIA REIT Sub Belief fund and/or the opposite related abroad REIT funds.

Efficiency Particulars

Absolute Returns of the fund

• 1-Yr Return: 0.0%
• 3-Yr Return: minus 3.82%
• Return since inception: minus 2.2%

Annualised Returns of the fund

• 1-Yr Return: 0.0%
• 3-Yr Return: minus 1.2%
• Return since inception: minus 0.5%

Our View:

• That is a global fund and underlying fund invests primarily in firms in REITs in APAC area
• This fund has generated minus 2.0% absolute returns since inception.
• In case you are invested in such funds, contemplate reviewing their efficiency and exiting in the event that they now not align together with your monetary targets.

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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