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Are you invested in these worst-performing mutual funds?

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?


Posted on 08 Feb 2023
Author: Sayan Sircar
5 mins read
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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?

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?

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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.

Related:
Which index funds to invest in and why?

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?

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This post titled Are you invested in these worst-performing mutual funds? first appeared on 08 Feb 2023 at https://arthgyaan.com


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