Over the past decade, the Indian stock market has seen a remarkable rally. From 12-May-2015 to 11-May-2025, the Nifty 50 index has delivered a 10-year CAGR of approximately 12.7%. During this period, many well-managed active equity mutual funds have generated double-digit annualised returns, outperforming the benchmark. However, not all mutual funds have lived up to expectations. A surprising number of equity funds—especially those focused on international, sectoral, or thematic themes—have significantly underperformed. In fact, some have returned as low as 0.72% CAGR over the last 10 years, turning a ₹1 lakh investment into just around ₹1.07 lakhs. In this article, we will discuss the 10 Worst Performing Mutual Funds in the Last 10 Years (12-May-2015 to 11-May-2025).
How We Filtered these Worst Performing Mutual Funds?
- We considered all equity mutual funds, including sectoral and thematic funds and global funds.
- We excluded ETFs from this list.
- We filtered the bottom 10 funds based on their 10-year CAGR returns.
- These 10 funds generated 0.7% to 6.2% annualised returns in the Last 10 Years.
We could observe that some of these are part of our earlier article 10 Worst Performing Mutual Funds in last 5 years.
List of 10 Worst Performing Mutual Funds in the Last 10 Years
Here are the 10 worst-performing mutual funds based on their 10-year annualised returns:
| S No | Mutual Fund Name | 10 Yr CAGR Return % |
|---|---|---|
| 1 | HSBC Brazil Fund | 0.72 |
| 2 | DSP Global Clean Energy Fund of Fund | 2.05 |
| 3 | Franklin India Feeder – Templeton European Opportunities Fund | 2.47 |
| 4 | PGIM India Emerging Markets Equity Fund | 2.77 |
| 5 | Edelweiss Emerging Markets Opportunities Equity Offshore Fund | 4.75 |
| 6 | Kotak Global Emerging Market | 4.75 |
| 7 | HSBC Global Emerging Markets Fund | 5.38 |
| 8 | Franklin Asian Equity Fund | 6.00 |
| 9 | Invesco India – Invesco Pan European Equity FoF | 6.16 |
| 10 | Edelweiss ASEAN Equity Off-shore Fund | 6.20 |
10 Worst Performing Mutual Funds in the Last 10 Years – Deep Dive
Let’s explore these funds in detail, their objectives, performance, and our view.
#1 – HSBC Brazil Fund – 10-Year CAGR Return: 0.72%
Investment Objective: To provide long-term capital growth by investing in Brazil-focused equities.
Annualised Returns:
- 1 Year: -2.8%
- 3 Year: 4.6%
- 5 Year: 8.3%
- 10 Year: 0.7% (₹ 1 Lakh would have turned to 1.07 Lakhs)
Expense Ratio: 0.93% (Direct plan)
Beta: 0.44 indicating low volatility.
Alpha: -4.27 indicating poor risk-adjusted performance.
Our View: The HSBC Brazil Fund has underperformed in the long-term, with a 10-year return of just 0.72%, and recent returns also remain in negative territory. The investment of ₹ 1 Lakh since inception would have made this fund value as ₹ 70,685 (negative CAGR return of -2% since inception). Despite Brazil’s potential as an emerging market, poor risk-adjusted performance make this fund a high-risk option. Given the ongoing macroeconomic and political challenges in Brazil, investors may be better off avoiding such underperforming regions. As always, it’s wise to stick to a disciplined asset allocation strategy and consider allocating only a small portion of the portfolio to international funds with a consistent track record.
#2 – DSP Global Clean Energy Fund of Fund – 10-Year CAGR Return: 2.05%
Investment Objective: To provide long-term capital growth by investing predominantly in global companies engaged in the clean and renewable energy sector, through overseas mutual funds or ETFs.
Annualised Returns:
- 1 Year: -6.5%
- 3 Year: 5.3%
- 5 Year: 9.7%
- 10 Year: 2.05% (₹ 1 Lakh would have turned to 1.22 Lakhs)
Expense Ratio: 1.54% (Direct plan)
Beta: 0.58 indicating low volatility.
Alpha: -6.43 indicating poor risk-adjusted performance.
Our View: The DSP Global Clean Energy Fund of Fund has significantly underperformed over the long term, with a modest 10-year CAGR of 2.05%, translating to just ₹1.22 lakhs on a ₹1 lakh investment. With a low beta of 0.58, the fund is less volatile, but that hasn’t translated into better returns. Check out 20 Mutual Fund Schemes with Low Beta and High Alpha.
While the clean energy sector holds long-term promise, especially as the world transitions to renewables, the fund’s historical performance suggests it’s not the most efficient vehicle for capturing that growth. Investors should be cautious and consider exposure to global clean energy via more diversified or actively managed strategies with proven track records.
#3 – Franklin India Feeder – Templeton European Opportunities Fund – 10-Year CAGR Return: 2.4%
Investment Objective: Invests in Franklin European Growth Fund focusing on European equities.
Annualised Returns:
- 1 Year: 8.7%
- 3 Year: 9.3%
- 5 Year: 8.9%
- 10 Year: 2.4% (₹ 1 Lakh would have turned to 1.27 Lakhs)
Expense Ratio: 0.52% (Direct plan)
Beta: 0.28 indicating low volatility.
Alpha: -0.3 indicating poor risk-adjusted returns.
Our View: As indicated in our earlier article, this fund’s European exposure has not translated into strong returns historically. A relatively high expense ratio and marginally negative Alpha reduce its appeal. While Europe has shown signs of recovery in certain sectors, investors may want to consider diversified global funds or developed market funds with better consistency and lower costs.
#4 – PGIM India Emerging Markets Equity Fund – 10-Year CAGR Return: 2.7%
Investment Objective: This fund focuses on opportunities in emerging market equities excluding India.
Annualised Returns:
- 1 Year: 11.3%
- 3 Year: 11.0%
- 5 Year: 5.1%
- 10 Year: 2.7% (₹ 1 Lakh would have turned to 1.3 Lakhs)
Expense Ratio: 1.38% (Direct plan)
Beta: 0.48 indicating low volatility.
Alpha: -1.78 indicating poor risk adjusted returns.
Our View: While the PGIM India Emerging Markets Equity Fund aims to tap into growth across emerging markets (excluding India), its long-term performance has been relatively low. With a 10-year CAGR of just 2.7% and a 5-year CAGR of 5.1%, the returns have not lived up to expectations. Despite a relatively low Beta indicating lower volatility, the negative Alpha suggests subpar risk-adjusted returns. As highlighted earlier, investors should be cautious about allocating significant portions to underperforming or inconsistent international markets. A better approach is to maintain a well-diversified portfolio and consider global funds with strong and stable performance.
#5 – Edelweiss Emerging Markets Opportunities Equity Offshore Fund – 10-Year CAGR Return: 4.75%
Investment Objective: Invests in JPMorgan Funds – Emerging Markets Opportunities Fund for long-term capital appreciation.
Annualised Returns:
- 1 Year: 5.6%
- 3 Year: 6.8%
- 5 Year: 5.9%
- 10 Year: 4.75% (₹ 1 Lakh would have turned to 1.49 Lakhs)
Expense Ratio: 1.46% (Direct plan)
Beta: 0.56 indicating low volatility.
Alpha: –5.07 indicating poor performance relative to risk.
Our View: This fund’s performance has remained below par, despite its exposure to diverse emerging markets. The combination of a relatively high expense ratio and weak Alpha indicates that the fund has not generated enough risk-adjusted returns to justify its cost. Investors looking to diversify internationally should consider alternative global funds with stronger historical performance and more consistent Alpha.
You can also review 20 Mutual Funds that delivered positive returns every year in the last 10 years
#6 – Kotak Global Emerging Market Fund – 10-Year CAGR Return: 4.9%
Investment Objective: To provide long-term capital growth by investing in emerging markets across the globe.
Annualised Returns:
- 1 Year: 4.1%
- 3 Year: 7.3%
- 5 Year: 8.9%
- 10 Year: 4.9% (₹ 1 Lakh would have turned to 1.61 Lakhs)
Expense Ratio: 1.3% (Direct plan)
Beta: NA
Alpha: NA
Our View: Its 10-year CAGR return of 4.9% remains low, reflecting the overall volatility and unpredictability of emerging markets. Investors looking for international exposure should focus on funds with a strong long-term track record across market cycles.
#7 – HSBC Global Emerging Markets Fund – 10-Year CAGR Return: 5.38%
Investment Objective: Invests in emerging markets globally to generate long-term returns.
Annualised Returns:
- 1 Year: 9.2%
- 3 Year: 5.2%
- 5 Year: 7.9%
- 10 Year: 5.3% (₹ 1 Lakh would have turned to 1.68 Lakhs)
Expense Ratio: 0.72% (Direct plan)
Beta: 0.52 indicating low volatility.
Alpha: -5.69 indicating poor risk adjusted returns.
Our View: This fund still lags behind many domestic and global peers. The negative Alpha suggests the returns haven’t been satisfactory when adjusted for risk. Emerging markets can be volatile, and this fund’s performance reflects that inconsistency. Investors should evaluate whether this fits within their broader portfolio strategy.
The above fund also part of our earlier article on 10 Worst Performing Mutual Funds in last 3 years.
#8 – Franklin Asian Equity Fund – 10-Year CAGR Return: 6.0%
Investment Objective: Invests in companies across Asia (excluding Japan) for capital appreciation.
Annualised Returns:
- 1 Year: 9.3%
- 3 Year: 6.2%
- 5 Year: 6.1%
- 10 Year: 6.0% (₹ 1 Lakh would have turned to 1.78 Lakhs)
Expense Ratio: 1.59% (Direct plan)
Beta: 0.65 indicating lower volatility.
Alpha: -6.37 indicating poor returns for the risk taken.
Our View: The Franklin Asian Equity Fund provides exposure to Asian markets (excluding Japan), but its medium to long-term performance has been below average. Its 1-year returns, the 5-year and 10-year CAGRs remain low between at 6% and 9%. A Beta of 0.65 suggests lower volatility, but the significantly negative Alpha (-6.37) indicates poor compensation for the risk taken. Given the inconsistent performance of many Asian markets and the fund’s inability to generate strong risk-adjusted returns, investors should may review and invest in appropriate funds.
#9 – Invesco India – Invesco Pan European Equity FoF – 10-Year CAGR Return: 6.16%
Investment Objective: Invests in companies across Asia (excluding Japan) for capital appreciation.
Annualised Returns:
- 1 Year: 5.6%
- 3 Year: 13.7%
- 5 Year: 15.9%
- 10 Year: 6.16% (₹ 1 Lakh would have turned to 1.81 Lakhs)
Expense Ratio: 0.58% (Direct plan)
Beta: 0.63 indicating lower volatility.
Alpha: 2.54 indicating poor returns for the risk taken compared to category average (as per Moneycontrol website).
Our View: Its short term and long term performance is below par while 5 year CAGR returns are 15.9% which is impressive. Investors can review and take a call about such mutual fund schemes.
#10 – Edelweiss ASEAN Equity Off-shore Fund – 10-Year CAGR Return: 6.2%
Investment Objective: Invests in companies across Asia (excluding Japan) for capital appreciation.
Annualised Returns:
- 1 Year: 17.1%
- 3 Year: 7.4%
- 5 Year: 11.3%
- 10 Year: 6.2% (₹ 1 Lakh would have turned to 1.82 Lakhs)
Expense Ratio: 0.58% (Direct plan)
Beta: 0.36 indicating lower volatility.
Alpha: -2.7 indicating poor returns for the risk taken.
Our View: Its medium term and long term performance is below par while 1 year returns are 17.1% which is good. Investors can review and take a call about such mutual fund schemes.
Final Thoughts
You might be wondering what to do if you have invested in any of these funds. First review whether such funds align to your financial goals, risk appetite and tenure of investment. Then check for short to medium to long term performance along with stock market performance under which these funds are investing and take an invest, continue or exit decision.
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Sir, All Seems to be GLOBAL MUTUAL FUNDS. It is very difficult to predict our Domestic Mutual Funds performance and in this situation if we try to invest in these Global MF’s (as diversification) then the result will be like these and Hence, we must be very cautious in our Investing Plans.