Christmas often marks the year-end review period for investors. It is a time when many reassess portfolios, book profits, or identify laggards that need attention. While several equity mutual funds delivered strong returns over the last year, some funds were caught on the wrong side of sector rotation and market corrections. In this article, we analyse 10 mutual funds that crashed the most since last Christmas, delivering negative returns between -12% and -18% over the last one year. These funds largely belong to real estate, momentum, technology, and small-cap factor-based categories, highlighting how concentrated themes can underperform when market cycles turn.
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What Are Equity Mutual Funds?
Equity mutual funds invest predominantly in shares of listed companies. Their primary objective is long-term capital appreciation. Depending on their mandate, they may focus on specific sectors like real estate or technology, follow themes such as momentum or quality, or invest across market capitalisations.
While equity funds can generate wealth over long periods, sectoral and thematic funds tend to be more volatile. When market sentiment shifts or macro conditions change, these funds can witness sharp drawdowns, as seen among the worst performers since last Christmas.
How We Identified These Mutual Funds
To ensure consistency and transparency, we used the following screening criteria:
- Considered only equity-oriented mutual funds, including sectoral, thematic, and factor-based funds
- Focused on Direct Plans – Growth options for uniform comparison
- Analysed 1-year absolute returns since last Christmas
- Excluded debt, hybrid, arbitrage, gold, and silver funds
Data based on latest available NAVs
🔻 Top 10 Mutual Funds That Crashed the Most Since Last Christmas
| Rank | Mutual Fund Scheme | 1-Year Return (%) |
|---|---|---|
| 1 | Tata Nifty Realty Index Fund | -18.0 |
| 2 | Nippon India Nifty Realty Index Fund | -18.0 |
| 3 | HDFC NIFTY Realty Index Fund | -17.9 |
| 4 | Shriram Multi Sector Rotation Fund | -16.6 |
| 5 | Samco Flexi Cap Fund | -16.6 |
| 6 | Samco Active Momentum Fund | -14.6 |
| 7 | Union Active Momentum Fund | -14.1 |
| 8 | Quant Teck Fund | -13.7 |
| 9 | Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF FoF | -12.2 |
| 10 | DSP Nifty Smallcap 250 Quality 50 Index Fund | -11.9 |
Deep Dive into Each Mutual Fund
#1 – Tata Nifty Realty Index Fund (-18.0%)
Fund Objective:
- To track the performance of the Nifty Realty Index
- Invests in listed real estate and allied sector companies
Performance:
- 1 Year return: -18.0%
- 3 Year CAGR: NA
- 5 Year CAGR: NA
Who Can Invest:
- Investors with long-term conviction in India’s real estate cycle
- Those comfortable with sector-specific volatility
Risk Factors:
- High sensitivity to interest rates
- Cyclical nature of real estate sector
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#2 – Nippon India Nifty Realty Index Fund (-18.0%)
Fund Objective:
- To replicate returns of the Nifty Realty Index
Performance:
- 1 Year return: -18.0%
- 3 Year CAGR: NA
- 5 Year CAGR: NA
Who Can Invest:
- Investors looking for passive exposure to realty stocks
Risk Factors:
- Regulatory changes in real estate
- Slowdown in housing demand
#3 – HDFC NIFTY Realty Index Fund (-17.9%)
Fund Objective:
- To mirror the performance of Nifty Realty Index with minimal tracking error
Performance:
- 1 Year return: -17.9%
- 3 Year CAGR: NA
- 5 Year CAGR: NA
Who Can Invest:
- Long-term investors with high risk tolerance
Risk Factors:
- Sector concentration risk
- Dependence on credit availability
#4 – Shriram Multi Sector Rotation Fund (-16.6%)
Fund Objective:
- To rotate investments across sectors based on economic cycles
Performance:
- 1 Year return: -16.6%
- 3 Year CAGR: NA
- 5 Year CAGR: NA
Who Can Invest:
- Investors preferring tactical sector allocation
Risk Factors:
- Incorrect sector timing
- Higher portfolio churn
#5 – Samco Flexi Cap Fund (-16.6%)
Fund Objective:
- To invest across large-cap, mid-cap, and small-cap stocks flexibly
Performance:
- 1 Year return: -16.6%
- 3 Year CAGR: 4.2%
- 5 Year CAGR: NA
Who Can Invest:
- Investors with long-term horizon
Risk Factors:
- Mid and small-cap volatility
- Aggressive allocation during market corrections
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#6 – Samco Active Momentum Fund (-14.6%)
Fund Objective:
- To invest in stocks showing strong price momentum
Performance:
- 1 Year return: -14.6%
- 3 Year CAGR: NA
- 5 Year CAGR: NA
Who Can Invest:
- High-risk investors seeking momentum strategies
Risk Factors:
- Sharp trend reversals
- Higher volatility during market corrections
#7 – Union Active Momentum Fund (-14.1%)
Fund Objective:
- To capture market momentum through active stock selection
Performance:
- 1 Year return: -14.1%
- 3 Year CAGR: NA
- 5 Year CAGR: NA
Who Can Invest:
- Investors with aggressive risk appetite
Risk Factors:
- Momentum factor cyclicality
- Underperformance during sideways markets
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#8 – Quant Teck Fund (-13.7%)
Fund Objective:
- To invest primarily in technology and digital economy stocks
Performance:
- 1 Year return: -13.7%
- 3 Year CAGR: NA
- 5 Year CAGR: NA
Who Can Invest:
- Long-term investors bullish on technology
Risk Factors:
- Global IT spending slowdown
- Currency and valuation risks
#9 – Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF FoF (-12.2%)
Fund Objective:
- To invest in a momentum and quality-based small-cap ETF
Performance:
- 1 Year return: -12.2%
- 3 Year CAGR: NA
- 5 Year CAGR: NA
Who Can Invest:
- Aggressive investors with long holding period
Risk Factors:
- Small-cap volatility
- Liquidity risks during corrections
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#10 – DSP Nifty Smallcap 250 Quality 50 Index Fund (-11.9%)
Fund Objective:
- To track quality-focused small-cap stocks
Performance:
- 1 Year return: -11.9%
- 3 Year CAGR: NA
- 5 Year CAGR: NA
Who Can Invest:
- Investors seeking factor-based small-cap exposure
Risk Factors:
- Sharp drawdowns during risk-off phases
- Higher volatility than large caps
Key Takeaways
- Realty Sector Hit Hard: Realty index funds dominated the worst performers list
- Momentum Strategies Struggled: Momentum-based funds suffered during trend reversals
- Thematic Concentration Risk: Sector-heavy portfolios can magnify downside
- Short-Term Returns Can Mislead: One-year performance should not drive panic decisions
Conclusion
The last year since Christmas has been challenging for certain equity mutual fund categories. Realty, momentum, and technology-oriented funds witnessed sharp corrections due to sector rotation, macro uncertainties, and valuation resets.
Investors should avoid reacting purely to short-term underperformance. Instead, evaluate whether the fund’s strategy still aligns with long-term goals and risk tolerance. Diversification across styles, sectors, and market caps remains the most effective way to manage downside risk in equity investing.
As history shows, today’s laggards can become tomorrow’s leaders when market cycles turn — patience and discipline remain key.
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