The Indian stock market performed well in 2023 and 2024 and took some correction in the last few months. Nifty generated 12% returns in the last 3 years. Everything is not rosy. There are several mutual funds that generated below 5% returns too. You might be wondering when Nifty is positive in the past 3 years and majority of the active funds generated double digit returns, how come there are mutual funds generating negative returns or low returns. Let’s get into more details about such funds. In this article, we will discuss the 10 Worst Performing Mutual Funds in the last 3 years (8-Feb-2022 to 7-Feb-2025).
How We Identified These Worst Performing Mutual Funds?
- We considered all equity mutual funds, including sectoral and thematic funds and global funds.
- We excluded ETFs from our analysis.
- We filtered the bottom 10 funds based on their 3-year returns.
- These 10 funds generated minus 3% to positive 3% returns in the last 3 years. Means if one would have kept the money in a simple bank savings account that generates between 3% to 6% with zero risk, they would have made higher money with peace of mind.
If you are not aware of mutual fund categories, you can explore different types of mutual funds in India.
Let’s take a deeper look at them.
List of 10 Worst Performing Mutual Funds in the Last 3 Years
Here are the 10 worst-performing mutual funds based on their 3-year returns:
#1 – Edelweiss Greater China Equity Off-shore Fund – 3-Year Return: -3.24%
#2 – Mahindra Manulife Asia Pacific REITs FoF – 3-Year Return: -3.0%
#3 – Axis Greater China Equity FoF – 3-Year Return: -1.5%
#4 – Edelweiss Emerging Markets Opportunities Equity Offshore Fund – 3-Year Return: 0.04%
#5 – Kotak International REIT FoF – 3-Year Return: 0.08%
#6 – Franklin Asian Equity Fund – 3-Year Return: 0.5%
#7 – HSBC Global Emerging Markets Fund – 3-Year Return: 1.6%
#8 – PGIM India Emerging Markets Equity Fund – 3-Year Return: 2.0%
#9 – Kotak Global Emerging Market Fund – 3-Year Return: 2.3%
#10 – HSBC Brazil Fund – 3-Year Return: 2.4%
Deep Dive into These Worst Performing Mutual Funds
Let’s explore these funds in detail, their objectives, performance, and our view.
#1 – Edelweiss Greater China Equity Off-shore Fund – 3-Year Return: -3.24%
Investment Objective: 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.
Absolute Returns of the fund
- 1-Year Return: 27.2%
- 3-Year Return: -10.8%
- 5-Year Return: 23.8%
- 10-Year Return: 128.5%
Annualised Returns of the fund
- 1-Year Return: 27.2%
- 3-Year Return: -3.24%
- 5-Year Return: 4.3%
- 10-Year Return: 8.6%
Our View:
- The fund has faced volatility due to China’s economic slowdown and regulatory issues in the last 3 years, however recovering now in the last 1 year.
- If you are holding this fund, it is advisable to review its performance and consider switching to a well-performing international equity fund.
#2 – Mahindra Manulife Asia Pacific REITs FoF – 3-Year Return: -3.0%
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.
Absolute Returns of the fund
- 1-Year Return: 1.2%
- 3-Year Return: -8.8%
- Return since inception: -14.6%
Annualised Returns of the fund
- 1-Year Return: 1.2%
- 3-Year Return: -3.0%
- Return since inception: -4.6%
Our View:
- This is an global fund and underlying fund invests primarily in companies in REITs in Asia Pacific ex-Japan.
- This fund has generated negative returns since inception.
- The REIT sector has struggled due to rising interest rates and economic slowdown.
- Investors should reassess their holdings and consider alternative real estate funds with better track records.
#3 – Axis Greater China Equity FoF – 3-Year Return: -1.5%
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.
Absolute Returns of the fund
- 1-Year Return: 25.2%
- 3-Year Return: -4.5%
- Return since inception: -21.3%
Annualised Returns of the fund
- 1-Year Return: 25.2%
- 3-Year Return: -1.5%
- Return since inception: -5.8%
Our View:
- Ongoing geopolitical tensions and economic concerns have impacted returns.
- Investors should monitor the fund closely and explore other emerging market funds.
#4 – Edelweiss Emerging Markets Opportunities Equity Fund – 3-Year Return: 0.04%
Investment Objective: The primary investment objective of the scheme is to seek to provide long term capital growth by investing predominantly in the JPMorgan Funds – Emerging Markets Opportunities Fund, an equity fund which invests primarily in an aggressively managed portfolio of emerging market companies.
Absolute Returns of the fund
- 1-Year Return: 12.6%
- 3-Year Return: 0.1%
- 5-Year Return: 17.3%
- 10-Year Return: 73.3%
Annualised Returns of the fund
- 1-Year Return: 12.6%
- 3-Year Return: 0.04%
- 5-Year Return: 3.2%
- 10-Year Return: 5.6%
Our View:
- The fund has underperformed compared to its peers.
- There is nothing wrong with the fund which invests based on investment objective, however the underlying markets has been under performing.
- This fund could not double money in 10 years time frame. Even if we consider latest Kisan Vikas Patra Interest Rates (which are lower compared to few years back), your investment would have doubled in less than 10 years.
- Consider reallocating to more stable and higher-performing international funds.
#5 – Kotak International REIT FoF – 3-Year Return: 0.08%
Investment Objective: 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.
Absolute Returns of the fund
- 1-Year Return: 5.5%
- 3-Year Return: 0.25%
- Return since inception: -0.07%
Annualised Returns of the fund
- 1-Year Return: 5.5%
- 3-Year Return: 0.08%
- Return since inception: -0.02%
Our View:
- This fund invests primarily in companies in REITs in APAC Region.
- The fund’s performance has been weak due to global real estate sector challenges.
- This fund generated minus 0.02% annualised returns since inception.
- Investors should consider switching to better-performing REIT-focused funds.
#6 – Franklin Asian Equity Fund – 3-Year Return: 0.5%
Investment Objective: To provide medium to long-term capital appreciation by investing in Asian companies and sectors. The fund excludes Japan from its investments.
Absolute Returns of the fund
- 1-Year Return: 19.1%
- 3-Year Return: 1.7%
- 5-Year Return: 19.9%
- 10-Year Return: 94.4%
Annualised Returns of the fund
- 1-Year Return: 19.1%
- 3-Year Return: 0.5%
- 5-Year Return: 3.7%
- 10-Year Return: 6.8%
Our View:
- The fund has lagged behind many peers in the Asian equity segment.
- Investors may want to look at other funds with stronger track records.
Investors should also explore Best International Mutual Funds for 2025 to invest based on their risk appetite.
#7 – HSBC Global Emerging Markets Fund – 3-Year Return: 1.6%
Investment Objective: This fund invests in emerging market equities globally.
Absolute Returns of the fund
- 1-Year Return: 20%
- 3-Year Return: 5.0%
- 5-Year Return: 31.5%
- 10-Year Return: 84.4%
Annualised Returns of the fund
- 1-Year Return: 20%
- 3-Year Return: 1.6%
- 5-Year Return: 5.6%
- 10-Year Return: 6.3%
Our View:
- The fund’s performance has been inconsistent.
- Investors should monitor and consider alternative global funds.
#8 – PGIM India Emerging Markets Equity Fund – 3-Year Return: 2.0%
Investment Objective: This fund focuses on emerging markets outside India.
Absolute Returns of the fund
- 1-Year Return: 24.6%
- 3-Year Return: 5.9%
- 5-Year Return: 14.2%
- 10-Year Return: 49.4%
Annualised Returns of the fund
- 1-Year Return: 24.6%
- 3-Year Return: 2.0%
- 5-Year Return: 2.7%
- 10-Year Return: 4.1%
Our View:
- The fund’s returns have been subpar.
- Consider switching to a more stable emerging markets fund.
#9 – Kotak Global Emerging Market Fund – 3-Year Return: 2.3%
Investment Objective: This fund invests in global emerging markets.
Absolute Returns of the fund
- 1-Year Return: 10.0%
- 3-Year Return: 7.1%
- 5-Year Return: 38.0%
- 10-Year Return: 80.6%
Annualised Returns of the fund
- 1-Year Return: 10.0%
- 3-Year Return: 2.3%
- 5-Year Return: 6.6%
- 10-Year Return: 6.0%
Our View:
- The fund has delivered very low returns. Even a simple bank FD would have fetched higher returns
- Investors should evaluate performance against stronger global funds.
#10 – HSBC Brazil Fund – 3-Year Return: 2.4%
Investment Objective: to provide long term capital appreciation by investing predominantly in units/shares of HSBC Global Investment Funds (HGIF) Brazil Equity Fund.
This was the top fund figured in our last month article on Worst Performing Mutual Funds in 1 Year.
Absolute Returns of the fund
- 1-Year Return: -12.3%
- 3-Year Return: 7.5%
- 5-Year Return: -27.0%
- 10-Year Return: 6.3%
Annualised Returns of the fund
- 1-Year Return: -12.3%
- 3-Year Return: 2.4%
- 5-Year Return: -6.1%
- 10-Year Return: 0.6%
Our View:
- This fund invests in Brazil companies and Brazil’s market volatility has impacted returns.
- This fund generated 2% annualised returns since inception.
- Investors should review and consider more diversified emerging market funds.
Final Thoughts
If you are invested in any of these mutual funds, review their performance and consider better mutual funds for long-term wealth creation in 2025 based on your risk appetite, financial goals and how long you want to invest in them.
- 10 Mutual Funds that Outperformed with 21% to 29% Returns Since Last Gandhi Jayanthi - October 4, 2026
- 9 Hybrid Mutual Funds With 3-Year Annualized Returns Above 15.1% (Oct-26 Update) - October 2, 2026
- SMC Global Securities NCD Sep-2026 – Interest Rates, Ratings and Review - September 30, 2026