Arthgyaan

Supporting everyone's personal finance journey

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
Tags: Tags Portfolio Review ;  Mutual Funds
7 mins read
📢Join 3400+ readers on WhatsApp and get new post notifications!

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?

This article is a part of our detailed article series on the worst performing mutual funds in India. Ensure you have read the other parts here:

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?

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

Did you know that we have a private Facebook group which you can join for free and ask your own questions? Please click the button below to join.

Also read
12 mistakes that interrupt compounding: what to do instead

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?

Related Articles

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.

For resident Indians 🇮🇳:


For NRIs 🇺🇸🇬🇧🇪🇺🇦🇺🇦🇪🇸🇬:


Share on WhatsApp:

To understand how this article can help you:

If you have a comment or question about this article

The following button will open a form with the link of this page populated for context:

If you liked this article, please leave us a rating

The following button will take you to Trustpilot:

Discover an article from the archives

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 gives you the mathematical support regarding the financial and life-stage reasons to consider accelerating loan repayment, from income stability concerns to freeing up funds for retirement or children’s education.</p>
House Purchase Loans Mutual Funds
Pay Off Your Home Loan Faster: How Extra EMI Payments Save Time and Money

This article gives you the mathematical support regarding the financial and life-stage reasons to consider accelerating loan repayment, from income stability concerns to freeing up funds for retirement or children’s education.

Published: 1 December 2024

3 MIN READ

<p>This article explores how your CTC translates to in-hand salary, maximum loan eligibility, and the right down payment for your dream house.</p>
House Purchase
How Much CTC Do You Need to Buy a ₹1 Crore Home in India?

This article explores how your CTC translates to in-hand salary, maximum loan eligibility, and the right down payment for your dream house.

Published: 27 November 2024

3 MIN READ

Topics you will like:



Next steps:

1. Email me with any questions.

2. Use our goal-based investing template to prepare a financial plan for yourself.

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.

More posts...

Disclaimer: Content on this site is for educational purpose only and is not financial advice. Nothing on this site should be construed as an offer or recommendation to buy/sell any financial product or service. Please consult a registered investment advisor before making any investments.

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


We are currently at 497 posts and growing fast. Search this site:
Copyright © 2021-2024 Arthgyaan.com. All rights reserved.