Stock markets have reached a peak in the last few months and majority of the mutual funds are doing well in the last 1 year. While there are over 600 equity mutual funds, there are several underperforming mutual funds too even in this bull run. In this article we would talk about 10 Worst Performing Mutual Funds in the last 1 year (7-Mar-2023 to 6-Mar-2024) that generated negative returns.
Also Read: 5 Mutual Fund Schemes with 10-Year Returns between 920% to 1,250%
How we filtered these worst performing mutual funds in the last 1 year?
We considered all equity mutual funds including sector funds and thematic mutual funds. However, we have excluded ETFs from this list. We got 600+ mutual funds list here.
Filtered funds that generated lowest returns in the last 1 year.
We got 10 funds that had generated negative returns between minus 0.1% to minus 15%.
You might be wondering when stock markets are reaching new highs, how come such funds generating negative returns. Let’s get into more details about such funds.
List of Top 10 Worst Performing Mutual Funds in the last 1 year
Here is the list of 10 Worst Performing Mutual Funds in the last 1 year.
#1 – Edelweiss Greater China Equity Off-shore Fund – 1 Year Return – Minus 15.26%
#2 – Mirae Asset Hang Seng TECH ETF FoF – 1 Year Return – Minus 13.74%
#3 – Axis Greater China Equity FoF – 1 Year Return – Minus 12.94%
#4 – DSP World Mining Fund – 1 Year Return – Minus 12.85%
#5 – DSP World Agriculture Fund – 1 Year Return – Minus 9.27%
#6 – Mahindra Manulife Asia Pacific REITs FoF – 1 Year Return – Minus 7.65%
#7 – Mirae Asset Global Electric & Autonomous Vehicles ETFs FoF – 1 Year Return – Minus 5.11%
#8 – Kotak International REIT FOF – 1 Year Return – Minus 0.64%
#9 – Franklin Asian Equity Fund – 1 Year Return – Minus 0.49%
#10 – DSP World Energy Fund – 1 Year Return – Minus 0.12%
10 Worst Performing Mutual Funds in the last 1 year – Deep Dive into these funds
Let’s get into more details on the funds investment objective, performance and our view about these funds.
#1 – Edelweiss Greater China Equity Off-shore Fund – 1 Year Return – Minus 15.26%
Investment Objective:
The primary investment objective of the Scheme is to provide long term capital appreciation by investing in JPMorgan Funds – Greater China Fund, an equity fund which invests primarily in a diversified portfolio of companies that are domiciled in, or carrying out the main part of their economic activity in, a country of Greater China region.
Performance Details
Absolute Returns of the fund (Direct Plans)
- 1-Year Return: minus 15.2%
- 2-Year Return: minus 20.7%
- 3-Year Return: minus 37.9%
- 5-Year Return: 23%
- 10-Year Return: 104%
Annualised Returns of the fund (Direct Plans)
- 1-Year Return: minus 15.2%
- 2-Year Annualised Return: minus 10.9%
- 3-Year Annualised Return: minus 14.7%
- 5-Year Annualised Return: 4.2%
- 10-Year Annualised Return: 7.4%
Our View:
- This is a global mutual fund that invests in another fund which invests in stocks of china. Global funds are riskier as these have geo-political risks, foreign exchange conversion risk etc.,
- Its underlying China fund top-10 share holdings are Taiwan Semiconductor, Tencent, AIA, NetEase, Trip.com, Quantacomputer, Baidu, HKEX, eMemory Technology and Realtek Semiconductor.
- According to CNN report, China stock markets have lost USD 6 trillion in the last 3 years due to various problems including a record downturn in real estate, deflation, debt, a falling birthrate and shrinking workforce, as well as a shift towards ideology-driven policies that has rattled the private sector and scared away foreign firms
- This fund has generated 8.4% annualised returns since inception.
- China’s market have been underperforming in the last 3 years and there is no sign of revival at this point of time. If you have already invested in such mutual funds, you may hold for some more time. Avoid any fresh investments and you can stop any SIPs you might have in such funds.
#2 – Mirae Asset Hang Seng TECH ETF FoF – 1 Year Return – Minus 13.74%
Investment Objective:
The Mirae Asset Hang Seng TECH ETF FoF’s investment objective is to provide long-term capital appreciation through a portfolio of units in the Mirae Asset Hang Seng TECH ETF which in turn invests in Hang Seng Tech Index.
Performance Details
Absolute Returns of the fund (Direct Plans)
- 1-Year Return: minus 13.7%
- 2-Year Return: minus 18.7%
- Since inception: minus 34.7%
Annualised Returns of the fund (Direct Plans)
- 1-Year Return: minus 13.7%
- 2-Year Return: minus 9.7%
- Since inception: minus 16.9%
Our View:
- Even this is an international mutual fund that invests in Hang Seng Index (Hong Kong index). Global funds are riskier as these have geo-political risks, foreign exchange conversion risk etc.,
- Hang Seng Index top-10 share holdings are BABA, Tencent, JD-SW, Xiaomi, Kuaishou, .Li Auto, NTES, Meituan, Bidu and Lenovo group
- China’s economic weakness has dragged down the performance of Chinese stocks listed in Hong Kong, exacerbated by the intensifying property crisis in China that has spilled over into Hong Kong. The lack of liquidity indicates a waning institutional interest in Hong Kong, while investor confidence has suffered amidst China’s regulatory crackdowns.
- This fund was launched 2.5 years back and generated minus 16.9% annualised return since inception.
- Hongkong Index has major impact due to slowdown in China’s stock market in the last 3 years and even here too there is no sign of revival at this point of time. If you have already invested in such mutual funds, you may hold for some more time. Avoid any fresh investments and you can stop any SIPs you might have in such funds for now.
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#3 – Axis Greater China Equity FoF – 1 Year Return – Minus 12.94%
Investment Objective:
To provide long term capital appreciation by predominatingly investing in units of Schroder International Selection Fund Greater China, a fund that aims to provide capital growth by investing in equity and equity related securities of People’s Republic of China, Hong Kong SAR and Taiwan companies.
Performance Details
Absolute Returns of the fund (Direct Plans)
- 1-Year Return: minus 12.9%
- 2-Year Return: minus 13.9%
- 3-Year Return: minus 28.7%
- Return since inception: minus 33.7%
Annualised Returns of the fund (Direct Plans)
- 1-Year Return: minus 14.8%
- 2-Year Annualised Return: minus 7.1%
- 3-Year Annualised Return: minus 10.6%
- Return since inception: minus 12.6%
Our View:
- Even this is a global mutual fund that invests in another fund which invests in companies of China and Hongkong. Global funds are riskier as these have geo-political risks, foreign exchange conversion risk etc.,
- Its underlying fund top-5 share holdings are Taiwan Semiconductor, Tencent, Alibaba Group, AIA Group and Media Tek Inc.
- This fund has generated minus 33.7% annualised return since inception.
- Like I indicated in earlier section, China and Hongkong markets have been falling in the last 3 years with no signs of revival in near term. If you have already invested in such mutual funds, you may hold for some more time. Avoid making fresh investments in such funds for now. If you have created SIP in such funds, you may pause / divert to other equity mutual funds for now.
#4 – DSP World Mining Fund – 1 Year Return – Minus 12.85%
Investment Objective:
The fund would predominantly invest in units of BlackRock Global Funds – World Mining Fund. The underlying fund invests primarily in leading international companies in the mining and metals sector.
Performance Details
Absolute Returns of the fund (Direct Plans)
- 1-Year Return: minus 12.8%
- 2-Year Return: minus 15.2%
- 3-Year Return: 11.3%
- 5-Year Return: 76.8%
- 10-Year Return: 67.2%
Annualised Returns of the fund (Direct Plans)
- 1-Year Return: minus 12.8%
- 2-Year Return: minus 7.9%
- 3-Year Return: 3.6%
- 5-Year Return: 12%
- 10-Year Return: 5.2%
Our View:
- This is an international fund and underlying fund invests primarily in leading international companies in the mining and metals sector.
- Its underlying Blackrock world mining fund top-10 share holdings are BHP Group, Glencore PLC, Vale SA, Rio Tinto PLC, Freeport, McMoran, Wheaton Precious Metals, Newmont Corp, Barrick Gold Corp and Nucor Corp
- This fund has generated 3.3% annualised returns since inception.
- As per recent E&Y report, mining and metals sector will encounter a complex operating environment in 2024, with numerous challenges ahead
- If you have already invested in such mutual funds, you may hold for some more time. Avoid making fresh investments into such funds for now. If you have created SIP in such funds, you may pause / divert to other equity mutual funds for now.
#5 – DSP World Agriculture Fund – 1 Year Return – Minus 9.27%
Investment Objective:
The primary investment objective of the Scheme is to seek capital appreciation by investing predominantly in units of BlackRock Global Funds – Nutrition Fund (BGF – NF).
The underlying fund invests globally at least 70% of its total assets in the equity securities of companies engaged in any activity forming part of the food and agriculture value chain, including packaging, processing, distribution, technology, food- and agriculture-related services, seeds, agricultural or food-grade chemicals and food producer
Performance Details
Absolute Returns of the fund (Direct Plans)
- 1-Year Return: minus 9.2%
- 2-Year Return: minus 13.8%
- 3-Year Return: minus 17.2%
- 5-Year Return: 10.7%
- 10-Year Return: 27.2%
Annualised Returns of the fund (Direct Plans)
- 1-Year Return: minus 9.2%
- 2-Year Return: minus 7.1%
- 3-Year Return: minus 6.1%
- 5-Year Return: 2%
- 10-Year Return: 2.4%
Our View:
- This is an international fund and underlying fund invests primarily in companies that are into food and agricultural value chain.
- Its underlying fund top-10 share holdings are Graphic Packaging, Nestle SA, Compass Group, Zoetis, John Bean Tech, China Mengniu, Bungle Global, Smurfit Kappa, Avery Dennison Corp and Costco Wholesale Corp.
- This fund has generated 3.6% annualised returns since inception. The hidden fact is that the underlying fund has generated zero returns in the last 12.5 years.
- If you have invested in such funds, you may review and exit appropriately.
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#6 – Mahindra Manulife Asia Pacific REITs FoF – 1 Year Return – Minus 7.65%
Investment Objective:
The scheme seeks to provide long term capital appreciation by investing predominantly in units of Manulife Global Fund Asia Pacific REIT Fund, an overseas fund primarily investing in real estate investment trusts (REITs) in the Asia Pacific ex-Japan region.
Performance Details
Absolute Returns of the fund (Direct Plans)
- 1-Year Return: minus 7.6%
- 2-Year Return: minus 11.9%
- Return since inception: minus 17.3%
Annualised Returns of the fund (Direct Plans)
- 1-Year Return: minus 7.6%
- 2-Year Return: minus 6.1%
- Return since inception: minus 7.7%
Our View:
- This is an international fund and underlying fund invests primarily in companies in REITs in Asia Pacific ex-Japan.
- The underlying fund top holdings are Link REIT, Ascendas, REIT, Capitaland Integrated commercial trust, Frasers Logistics and commercial trust and Frasers Centrepoint Trust.
- This fund has generated minus 7.7% annualised return since inception. The hidden fact is that the underlying fund has generated minus 5.6% returns in the last 5 years.
- If you have invested in such funds, you may review and exit appropriately.
#7 – Mirae Asset Global Electric & Autonomous Vehicles ETFs FoF – 1 Year Return – Minus 5.11%
Investment Objective:
The investment objective of the scheme is to provide long-term capital appreciation from a portfolio investing in units of overseas equity ETFs which are based on companies involved in the development of Electric & Autonomous Vehicles and related technology, components and materials.
Performance Details
Absolute Returns of the fund (Direct Plans)
- 1-Year Return: minus 5.1%
- Return since inception: minus 4.4%
Annualised Returns of the fund (Direct Plans)
- 1-Year Return: minus 5.1%
- Return since inception: minus 3%
Our View:
- This international fund was launched 1.5 years back that invests in companies that are in development of Electric & Autonomous Vehicles and related technology, components and materials.
- This fund has generated minus 3% annualised return since inception.
- This fund benchmarks to “Solactive Autonomous & Electric Vehicles TRI” that generated 70% returns in the last 5 years after the inception of the index. However, the performance of the underlying stocks has declined in the last 1.5 years only. If you have already invested in such mutual funds, you may hold for some more time.
#8 – Kotak International REIT FOF – 1 Year Return – Minus 0.64%
Investment Objective:
The investment objective of the scheme is to provide long-term capital appreciation and income by investing in units of SMAM ASIA REIT Sub Trust fund and/or the other similar overseas REIT funds.
Performance Details
Absolute Returns of the fund (Direct Plans)
- 1-Year Return: minus 0.6%
- 2-Year Return: minus 6.4%
- 3-Year Return: minus 0.9%
- Return since inception: minus 5.9%
Annualised Returns of the fund (Direct Plans)
- 1-Year Return: minus 0.6%
- 2-Year Return: minus 3.2%
- 3-Year Return: minus 0.3%
- Return since inception: minus 1.9%
Our View:
- This is an international fund and underlying fund invests primarily in companies in REITs in APAC region
- This fund has generated minus 1.9% annualised return since inception.
- If you have invested in such funds, you may review and exit appropriately.
#9 – Franklin Asian Equity Fund – 1 Year Return – Minus 0.49%
Investment Objective:
The scheme aims to provide medium to long term capital appreciation through investment in Asian companies/sectors, excluding Japan.
Performance Details
Absolute Returns of the fund (Direct Plans)
- 1-Year Return: minus 0.5%
- 2-Year Return: minus 6.3%
- 3-Year Return: minus 21.2%
- 5-Year Return: 20%
- 10-Year Return: 89.6%
Annualised Returns of the fund (Direct Plans)
- 1-Year Return: minus 0.5%
- 2-Year Return: minus 3.2%
- 3-Year Return: minus 7.6%
- 5-Year Return: 3.7%
- 10-Year Return: 6.6%
Our View:
- This is a global fund that invests in companies in Asian market ex-Japan.
- Its underlying fund top-10 share holdings are Taiwan Semiconductor, Samsung Electronics, Tencent, AIA Group, Alibaba, Hyundai, PT Bank, SK Hynix, Techtronic Industires and Zomato Ltd.
- This fund has generated 6.7% annualised returns since inception.
- Majority of its portfolio is in China region where for such stock markets there is no sign of revival for now. If you have already invested in such mutual funds, you may hold for some more time. Avoid any fresh investments or fresh funds through SIP.
Also read: 20 Equity Mutual Funds with Positive Returns every year in last 10 years
#10 – DSP World Energy Fund – 1 Year Return – Minus 0.12%
Investment Objective:
An open ended Fund of Funds Scheme seeks to generate capital appreciation by investing predominantly in the units of BlackRock Global Funds – World Energy Fund (BGF-WEF) and BlackRock Global Funds – Sustainable Energy Fund (BGF – SEF).
Performance Details
Absolute Returns of the fund (Direct Plans)
- 1-Year Return: minus 0.1%
- 2-Year Return: 18.1%
- 3-Year Return: 17.3%
- 5-Year Return: 35.3%
- 10-Year Return: 25.2%
Annualised Returns of the fund (Direct Plans)
- 1-Year Return: minus 0.1%
- 2-Year Return: 8.7%
- 3-Year Return: 5.4%
- 5-Year Return: 6.2%
- 10-Year Return: 2.2%
Our View:
- This is a global fund that invests in ETFs that invests in companies in the energy sector.
- This fund has generated 4.3% annualised returns since inception.
- The fund has been underperforming and generated 2.2% annualised returns in the last 10 years. If you have already invested, re-think your decision and exit such funds if possible.
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