Mutual funds allow investors to participate in equity and debt markets through professional management, but they are not immune to downturns. While the last one year has seen strong performance in some categories, several thematic and index funds witnessed steep declines, especially in momentum, consumption, manufacturing, and PSU-focused themes. This article highlights the 10 Mutual Funds That Crashed the Most in the Last 1 Year in 2025, explains why they fell, and provides a scheme-wise deep dive which would be helpful for mutual fund investors.
Earlier we analysed 10 Mutual Funds that Crashed the Most in the last 6 months in 2025.
What are Mutual Funds?
A mutual fund pools money from many investors and invests across stocks, bonds, or other securities in line with a stated investment objective. While diversified funds reduce risk, thematic and sectoral funds concentrate exposure and can therefore experience higher volatility.
Top 10 Mutual Funds That Fell Between 14% to 16% in the Last 1 Year
| Fund Name | 1-Year Return (%) | 1 Lakh would have become (₹) |
|---|---|---|
| Quant PSU Fund | -16.05 | 83,950 |
| Quant Manufacturing Fund | -15.65 | 84,350 |
| Tata Nifty Realty Index Fund | -14.72 | 85,280 |
| HDFC NIFTY Realty Index Fund | -14.10 | 85,900 |
| ICICI Prudential Nifty 200 Momentum 30 Index Fund | -14.10 | 85,900 |
| HDFC NIFTY200 Momentum 30 Index Fund | -14.09 | 85,910 |
| Bandhan Nifty200 Momentum 30 Index Fund | -14.06 | 85,940 |
| Motilal Oswal Nifty 200 Momentum 30 Index Fund | -13.93 | 86,070 |
| Samco Flexi Cap Fund | -13.93 | 86,070 |
| Quant Consumption Fund | -13.87 | 86,130 |
Note: The above list is based on official disclosures for the last 1 year. Many funds are relatively new and lack longer performance history.
Deep Dive: Fund-wise Analysis
Below is a summary of each fund’s objective, performance, who can invest, and key risks.
#1 – Quant PSU Fund
- Fund Objective: Focuses on companies from the Public Sector Undertaking (PSU) segment.
- Returns: 1 Year: -16.05%
- Who Can Invest:
- Investors betting on PSU revival and government reforms.
- Those with higher risk tolerance for sector-focused themes.
- Risk Factors:
- Regulatory and policy dependence.
- Cyclical nature of PSUs.
- Political risks and governance concerns.
#2 – Quant Manufacturing Fund
- Fund Objective: Invests in companies benefiting from India’s manufacturing and industrial growth.
- Returns: 1 Year: -15.65%
- Who Can Invest:
- Long-term investors bullish on India’s Make-in-India and industrial growth.
- Aggressive investors willing to handle cyclical downturns.
- Risk Factors:
- Economic slowdown.
- Commodity price fluctuations.
- Execution risk in manufacturing reforms.
Also Read: 10 Worst Performing Mutual Funds in last 20 years
#3 – Tata Nifty Realty Index Fund
- Fund Objective: Tracks the Nifty Realty Index.
- Returns: 1 Year: -14.72%
- Who Can Invest:
- Investors positive on India’s housing demand and urbanization story.
- Passive investors seeking exposure to the real estate sector.
- Risk Factors:
- Sector volatility and regulatory changes.
- High debt levels in real estate firms.
- Interest rate sensitivity.
#4 – HDFC NIFTY Realty Index Fund
- Fund Objective: Provide returns in line with the Nifty Realty Index.
- Returns: 1 Year: -14.10%
- Who Can Invest:
- Long-term investors bullish on real estate.
- Those seeking low-cost, passive exposure.
- Risk Factors:
- Sector downturns and liquidity crunches.
- Project delays and regulatory risks.
#5 – ICICI Prudential Nifty 200 Momentum 30 Index Fund
- Fund Objective: Tracks the Nifty200 Momentum 30 Index, focusing on high-momentum stocks.
- Returns: 1 Year: -14.10% | 3 Year: 16.97%
- Who Can Invest:
- Investors seeking smart-beta exposure.
- Those with a long-term horizon willing to ride volatility.
- Risk Factors:
- Momentum reversals.
- High volatility in fast-rising stocks.
- Short-term underperformance.
#6 – HDFC NIFTY200 Momentum 30 Index Fund
- Fund Objective: Passive fund replicating the Nifty200 Momentum 30 Index.
- Returns: 1 Year: -14.09%
- Who Can Invest:
- Investors preferring rule-based investing.
- Those with high-risk appetite.
- Risk Factors:
- Momentum investing cyclicality.
- Market timing issues.
#7 – Bandhan Nifty200 Momentum 30 Index Fund
- Fund Objective: Provide returns corresponding to Nifty200 Momentum 30 Index.
- Returns: 1 Year: -14.06%
- Who Can Invest:
- Momentum investors.
- Passive investors seeking quantitative strategies.
- Risk Factors:
- Sudden trend reversals.
- Sector concentration risk.
You may like: 10 Mutual Funds with Just 1.7% to 9.1% overall returns in 5 years.
#8 – Motilal Oswal Nifty 200 Momentum 30 Index Fund
- Fund Objective: Replicates Nifty200 Momentum 30 Index.
- Returns: 1 Year: -13.93% | 3 Year: 17.51%
- Who Can Invest:
- Investors seeking exposure to high-growth stocks through momentum.
- Long-term aggressive investors.
- Risk Factors:
- Sharp falls during market corrections.
- High turnover leading to costs.
#9 – Samco Flexi Cap Fund
- Fund Objective: Invests across large, mid, and small caps without restriction.
- Returns: 1 Year: -13.93% | 3 Year: 3.25%
- Who Can Invest:
- Investors looking for flexibility across market caps.
- Risk-tolerant investors.
- Risk Factors:
- Stock-picking risk.
- Higher volatility vs. large-cap funds.
#10 – Quant Consumption Fund
- Fund Objective: Invests in companies benefiting from India’s rising consumption.
- Returns: 1 Year: -13.87%
- Who Can Invest:
- Investors bullish on India’s consumer demand story.
- Long-term investors with high-risk appetite.
- Risk Factors:
- Slowdown in consumer spending.
- Inflation impacting margins.
- Valuation risks.
Why These Funds Fell — Quick Summary
- Theme Exposure: Funds concentrated in momentum, PSU, manufacturing, and realty saw amplified losses.
- Global & Domestic Headwinds: Economic slowdown, high interest rates, and sector-specific challenges.
- Profit Booking: After multi-year rallies, investors booked profits.
- Volatility in Cyclical Themes: Manufacturing, realty, and consumption are cyclical and sensitive to policy changes.
What Should Investors Do Now?
- Check Horizon: If you’re long-term (5+ years), short-term falls may be opportunities.
- Avoid Over-Concentration: Do not invest heavily in a single sector/theme.
- Compare Peers: Assess whether underperformance is fund-specific or sector-wide.
- Selective Entry: Long-term investors may use dips to accumulate quality funds.
Conclusion
The last one year has been turbulent for momentum, PSU, realty, and consumption-oriented funds. While such corrections can be unsettling, they are part of market cycles. For disciplined investors with a long-term view, these downturns can create buying opportunities. Always align fund selection with your risk appetite, financial goals, and time horizon before investing.
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