Gandhi Jayanthi often symbolizes simplicity and long-term vision. For investors, it is a good checkpoint to reflect on their investments and re-evaluate their portfolio strategy. While some equity mutual funds have delivered stellar returns in the last one year, several funds have performed poorly and eroded investor wealth. In this article, we will talk about the 10 mutual funds that crashed the most since the last Gandhi Jayanthi (2-Oct-2024 to 1-Oct-2025), with returns ranging from -19% to -22%.
Earlier we coverted 10 Mutual Funds that Outperformed with 32% to 94% Returns Since Last Gandhi Jayanthi.
What are Equity Mutual Funds?
Equity mutual funds are investment schemes that primarily invest in stocks of companies across market capitalizations (large-cap, mid-cap, small-cap) or focus on sectors/themes. They offer the potential for wealth creation in the long run but come with high volatility and risk, especially in the short term.
How We Identified These Mutual Funds
- We considered all equity mutual funds, including sector funds and thematic funds.
- We focused only on direct plans to eliminate distributor commissions.
- We analyzed 1-year performance from 2-Oct-2024 to 1-Oct-2025.
- Most of these funds were launched in the last few years, hence long-term data is limited.
Top-10 Worst Performing Mutual Funds Since Last Gandhi Jayanthi
| Rank | Fund Name | 1 Yr Returns (%) |
|---|---|---|
| 1 | Tata Nifty Realty Index Fund | -22.3 |
| 2 | HDFC NIFTY Realty Index Fund | -21.6 |
| 3 | HDFC NIFTY200 Momentum 30 Index Fund | -21.5 |
| 4 | ICICI Prudential Nifty 200 Momentum 30 Index Fund | -21.5 |
| 5 | Bandhan Nifty200 Momentum 30 Index Fund | -21.5 |
| 6 | Motilal Oswal Nifty 200 Momentum 30 Index Fund | -21.3 |
| 7 | Kotak Nifty 200 Momentum 30 Index Fund | -21.0 |
| 8 | UTI Nifty200 Momentum 30 Index Fund | -21.0 |
| 9 | Quant Business Cycle Fund | -19.7 |
| 10 | Samco Flexi Cap Fund | -19.2 |
Deep Dive into Each Mutual Fund
#1 – Tata Nifty Realty Index Fund (-22.3%)
- Fund Objective: To provide returns that closely correspond to the total returns of the Nifty Realty Index, subject to tracking error.
- Annualised Returns:
- 1 Year: -22.3%
- 3 Year: – Not Applicable
- 5 Year: – Not Applicable
- 10 Year: – Not Applicable
- Who Can Invest: Investors who want to take exposure to the real estate sector.
- Risk Factors:
- Highly cyclical sector.
- Sensitive to interest rates and government policies.
We also analysed this fund in our article 10 Mutual Funds That Crashed the Most in the Last 3 Months in 2025 (-7% to -15%).
#2 – HDFC NIFTY Realty Index Fund (-21.6%)
- Fund Objective: Replicate the performance of the Nifty Realty Index.
- Annualised Returns:
- 1 Year: -21.6%
- 3 Year: – Not Applicable
- 5 Year: – Not Applicable
- 10 Year: – Not Applicable
- Who Can Invest: Those with high-risk appetite focusing on sector-based opportunities.
- Risk Factors:
- Sector concentration risk.
- High volatility in real estate stocks.
#3 – HDFC NIFTY200 Momentum 30 Index Fund (-21.5%)
- Fund Objective: To track Nifty200 Momentum 30 Index which focuses on momentum-based strategy.
- Annualised Returns:
- 1 Year: -21.5%
- 3 Year: – Not Applicable
- 5 Year: – Not Applicable
- 10 Year: – Not Applicable
- Who Can Invest: Investors seeking exposure to momentum-driven stocks.
- Risk Factors:
- Over-dependence on trending stocks.
- Sharp corrections during volatile markets.
#4 – ICICI Prudential Nifty 200 Momentum 30 Index Fund (-21.5%)
- Fund Objective: Replicates performance of Nifty200 Momentum 30 Index.
- Annualised Returns:
- 1 Year: -21.5%
- 3 Year: 16.5%
- 5 Year: – Not Applicable
- 10 Year: – Not Applicable
- Who Can Invest: Investors with high-risk appetite.
- Risk Factors:
- Performance reversal if market momentum changes.
Do you know that above fund invests in an Index which generated over 30% CAGR in the last 5 years?
#5 – Bandhan Nifty200 Momentum 30 Index Fund (-21.5%)
- Fund Objective: Provides returns in line with Nifty200 Momentum 30 Index.
- Annualised Returns:
- 1 Year: -21.5%
- 3 Year: 16.3%
- 5 Year: Not Applicable
- 10 Year: Not Applicable
- Who Can Invest: Investors looking for momentum-based investing.
- Risk Factors:
- High volatility.
- Risk of trend reversal.
#6 – Motilal Oswal Nifty 200 Momentum 30 Index Fund (-21.3%)
- Fund Objective: Track Nifty200 Momentum 30 Index with minimal tracking error.
- Annualised Returns:
- 1 Year: -21.3%
- 3 Year: 16.9%
- 5 Year: Not Applicable
- 10 Year: Not Applicable
- Who Can Invest: Aggressive investors with long-term view.
- Risk Factors:
- Concentration risk.
- Higher drawdowns in bearish markets.
#7 – Kotak Nifty 200 Momentum 30 Index Fund (-21.0%)
- Fund Objective: Provide returns in line with the Nifty200 Momentum 30 Index.
- Annualised Returns:
- 1 Year: -21.0%
- 3 Year: Not Applicable
- 5 Year: Not Applicable
- 10 Year: Not Applicable
- Who Can Invest: Investors who want to follow factor-based strategies.
- Risk Factors:
- Sharp downside risks in falling markets.
#8 – UTI Nifty200 Momentum 30 Index Fund (-21.0%)
- Fund Objective: Mirror returns of Nifty200 Momentum 30 Index.
- Annualised Returns:
- 1 Year: -21.0%
- 3 Year: 17.2%
- 5 Year: Not Applicable
- 10 Year: Not Applicable
- Who Can Invest: High-risk investors focused on factor-based strategies.
- Risk Factors:
- Trend reversal can cause losses.
#9 – Quant Business Cycle Fund (-19.7%)
- Fund Objective: Invests across sectors based on business cycle approach.
- Annualised Returns:
- 1 Year: -19.7%
- 3 Year: Not Applicable
- 5 Year: Not Applicable
- 10 Year: Not Applicable
- Who Can Invest: Investors who believe in dynamic asset allocation.
- Risk Factors:
- Wrong cycle prediction can lead to poor returns.
Investors may also like – 10 Largecap Mutual Funds That Failed to Beat the Benchmark in Last 5 Years.
#10 – Samco Flexi Cap Fund (-19.2%)
- Fund Objective: Invests across large, mid, and small-cap companies with a flexible allocation.
- Annualised Returns:
- 1 Year: -19.2%
- 3 Year: 3.7%
- 5 Year: Not Applicable
- 10 Year: Not Applicable
- Who Can Invest: Investors seeking diversification across market caps.
- Risk Factors:
- Exposure to high volatility in mid and small-cap stocks.
Conclusion
While equity mutual funds offer long-term wealth creation opportunities, they can also undergo steep corrections due to market volatility, sectoral downturns, or theme-specific risks. The funds listed above show how sectoral and factor-based strategies can underperform drastically within a short period. Investors should diversify across categories, avoid over-concentration in a single sector/theme, and align investments with their risk appetite.
