« How many bear markets have we seen in India? The lie of wealth-creation via SIP in mutual funds »

Are you invested in these worst-performing mutual funds?

Posted on 08 Feb 2023
Author: Sayan Sircar

Tags: Portfolio Review ; Mutual Funds

5 mins read
Get new post notifications on WhatsApp!

This article lists mutual funds with the worst historical performance over 3, 5, 10, 15, and 20 years.

Are you invested in these worst-performing mutual funds?

Disclaimer: Fund names mentioned in the article are not recommendations for investing or not investing in them. The purpose here is to contrast active funds vs index funds in performance.

Summary:

We present a list of mutual funds with the worst historical performance over 3, 5, 10, 15, and 20 years, based on a review of 680 funds using data from Valueresearchonline.
We highlight that worst-performing funds should be reviewed regularly as part of an investor's portfolio review process.
The list includes worst-performing funds in both SIP and lump-sum forms and includes comparisons with a Nifty 50 index fund.
We also provide a disclaimer that this is point-to-point data and does not capture consistency data or future performance.
We suggest that investors consider their motivation for deliberate exposure to country or sector-specific risks and reconsider the need to invest in active funds.

📚 Topics covered:

What are the worst-performing mutual funds?
Worst SIP fund performance
Worst lump-sum fund performance
Some takeaways from this analysis

What are the worst-performing mutual funds?

We have examined 680 funds using data from Valueresearchonline to create lists of the worst-performing funds by examining returns in lump-sum and SIP form.

Warnings and disclaimers before you use this data:

This is point-to-point data, i.e. this is a snapshot of fund performance at this point in time. There is no consistency data captured here regarding these funds being consistently bad
The future performance of these funds will depend on the portfolio of these funds today and not what the fund manager did in the past. The stock market does not have any memory
Country or sector-specific risks have come out of the analyses. Investors should understand their motivation for deliberate exposure to such risks

Reviewing such lists of worst-performing funds is part of the fund review process that all investors should implement for their portfolio: Are you checking the performance of your funds regularly?

Recent articles:

1 / 3

<p>A quick retirement calculation for a reader query who has a good amount of corpus already saved for retirement.</p>

2 / 3

<p>This article explains the PFRDA announcement about a new default scheme under NPS Tier II for government employee subscribers.</p>

3 / 3

<p>As per SEBI rules, mutual fund investors must have nominees in their folios by 1st October 2023 or explicitly opt out. Otherwise they will face restrictions in selling units.</p>

❮ ❯

Join the Arthgyaan WhatsApp community: You can stay updated on our latest content and learn about our webinars. Our community is fully private so that no one, other than the admin, can see your name or number. Also, we will not spam you.

Worst SIP fund performance

In each of these cases, we have shown the final value of a ₹10,000/month SIP in these funds over the lookback period.

3-year SIP performance

Worst SIP returns for a 3 year period

5-year SIP performance

Worst SIP returns for a 5 year period

10-year SIP performance

Worst SIP returns for a 10 year period

15-year SIP performance

Worst SIP returns for a 15 year period

20-year SIP performance

Worst SIP returns for a 20 year period

Worst lump-sum fund performance

In each of these cases, we have shown the final value of a one-time ₹100,000 investment in these funds over the lookback period.

3-year lump-sum performance

Worst lump sum returns for a 3 year period

5-year lump-sum performance

Worst lump sum returns for a 5 year period

10-year lump-sum performance

Worst lump sum returns for a 10 year period

15-year lump-sum performance

Worst lump sum returns for a 15 year period

20-year lump-sum performance

Worst lump sum returns for a 20 year period

Some takeaways from this analysis

Worst-performing funds vs index funds

In each case, we have shown the fund performance along with a long-running Nity 50 index fund. Investors should note that in all cases, the index fund has done better than the funds in the list.

Inclusion of index funds in the list

For example, in the worst 20-year SIP returns list, we also have SENSEX and Nifty 50 funds. In a future article, we will examine why these funds from the same AMC have performed poorly.

Are you getting the right advice?

If you are investing in these funds via an advisor, now is an excellent time to revisit the rationale of sticking with these funds by sitting down with your advisor.

If you are a Do-It-Yourself (DIY) investor, you should reconsider why you need to invest in active funds and instead switch to index funds: What are the best index funds for new investors in India?

What's next? You can join the Arthgyaan WhatsApp community

You can stay updated on our latest content and learn about our webinars. Our community is fully private so that no one, other than the admin, can see your name or number. Also, we will not spam you.

If you liked this article, please leave us a rating

The following button will take you to Trustpilot:

Discover an article from the archives

Worked out case studies for goal-based investing

Case study: how can this middle aged investor with two children plan for retirement and children's goals?

This article shows how a single-income middle aged couple with two small children reach their retirement and children’s goals.
Case study: can this double income single kid family reach FIRE at 50?

This article shows how a double-income couple with a 2-year old reach their FIRE dream at the age of 50.
Case study: how a family in their mid-30s with a newborn kid can FIRE and invest in real estate?

This article shows how a double-income couple with a newborn child can invest for their future goals of FIRE and real-estate investment.
Case study: how this double income recently married family can perform DIY goal-based investment planning

This article shows how a young just-married couple can invest for future goals using the Arthgyaan goal-based investing tool.
Case Study: How should couples in their 40s with a new baby plan their financial future?

Did you welcome a bundle of joy in your 40s? This article will discuss ways of planning the child’s (and your’s financial future)
Case study: how this double income single kid family can perform DIY goal-based investment planning

This article shows how a very typical salaried couple with one child can invest for future goals using the Arthgyaan goal-based investing tool.

Previous and next articles:

<p>This article gives you a brief history of bear markets in India, where the stock market has fallen by 20% or more and has taken some time to recover.</p>

Market Movements

How many bear markets have we seen in India?

This article gives you a brief history of bear markets in India, where the stock market has fallen by 20% or more and has taken some time to recover.

Published: 5 February 2023

4 MIN READ

<p>This article shows you that investing via SIP in a mutual fund does not create wealth.</p>

Mutual Funds

The lie of wealth-creation via SIP in mutual funds

This article shows you that investing via SIP in a mutual fund does not create wealth.

Published: 12 February 2023

4 MIN READ

Latest articles:

<p>This article shows a handy ready reckoner for home loan EMI amounts for all tenures and interest rates along with the amount of principal and interest to be paid.</p>

House Purchase

How much EMI do I have to pay for my home loan?

This article shows a handy ready reckoner for home loan EMI amounts for all tenures and interest rates along with the amount of principal and interest to be paid.

Published: 29 September 2023

1 MIN READ

Retirement Reader Questions

How much money does this 39 year old investor need to invest per month to retire at 58?

A quick retirement calculation for a reader query who has a good amount of corpus already saved for retirement.

Published: 27 September 2023

7 MIN READ

Topics you will like:

Asset Allocation (20) Basics (8) Behaviour (10) Budgeting (11) Calculator (17) Case Study (6) Children (12) Choosing Investments (38) FAQ (6) FIRE (13) Gold (11) Health Insurance (4) House Purchase (17) Insurance (15) International Investing (10) Life Stages (2) Loans (9) Market Movements (13) Mutual Funds (29) NPS (6) NRI (13) News (9) Pension (8) Portfolio Construction (46) Portfolio Review (27) Reader Questions (6) Real Estate (6) Retirement (36) Review (12) Risk (6) Safe Withdrawal Rate (5) Set Goals (27) Step by step (14) Tax (37)

Next steps:

1. Email me with any questions.

2. Use our goal-based investing template to prepare a financial plan for yourself
OR
use this quick and fast online calculator to find out the SIP amount and asset allocation for your goals.

Don't forget to share this article on WhatsApp or Twitter or post this to Facebook.

Discuss this post with us via Facebook or get regular bite-sized updates on Twitter.