Equity mutual funds are generally considered long-term investment products, but that does not mean they will generate positive returns every year. Depending on the market environment, certain sectors, themes and market segments can go through sharp corrections, resulting in significant short-term losses for investors.
In the latest 1-year period, several equity mutual funds have delivered negative returns ranging from around 10% to 24%. The list includes technology and IT-focused funds, thematic funds, sector funds and index funds. Some of these funds have also delivered positive returns over longer periods, highlighting why investors should not judge an equity mutual fund only by its latest 1-year performance.
In this article, we look at 22 equity mutual funds that lost 10% or more in the latest 1-year period, based on the latest available NAV as of September 27, 2026. We also look at their longer-term performance wherever sufficient history is available.
Explore 15 Mutual Funds With 10-Year Annualized Returns Above 18% : Sep-26 Update
How We Selected These Mutual Funds
We considered equity mutual funds across categories and screened their latest 1-year returns. The analysis is based on Direct – Growth plans, and funds that delivered a negative return of 10% or more during the latest 1-year period were considered.
We excluded ETFs from the analysis. The data is sourced from Value Research, and returns are based on the latest available NAV as of September 27, 2026.
Wherever available, we have also provided 3-year, 5-year and 10-year annualized returns. This helps provide a broader perspective because a negative 1-year return does not necessarily mean that the fund has delivered poor returns over a longer investment period.
22 Equity Mutual Funds That Lost 10% to 24% in 1 Year
The table below shows the equity mutual funds that delivered negative returns of 10% or more during the latest 1-year period.
11 Non IT/Tech Funds List
| Fund Name | 1 Yr | 3 Yr CAGR | 5 Yr CAGR | 10 Yr CAGR |
|---|---|---|---|---|
| Groww Nifty India Railways PSU Index Fund | -24.0 | — | — | — |
| Mirae Asset Hang Seng TECH ETF FoF | -23.0 | 15.3 | — | — |
| ICICI Prudential FMCG Fund | -16.5 | -3.0 | 4.3 | 9.1 |
| Tata Nifty India Tourism Index Fund | -13.9 | — | — | — |
| Kotak Nifty India Tourism Index Fund | -13.8 | — | — | — |
| Kotak Nifty Top 10 Equal Weight Index Fund | -11.8 | — | — | — |
| DSP Nifty Top 10 Equal Weight Index Fund | -11.7 | — | — | — |
| ICICI Prudential Nifty Top 15 Equal Weight Index Fund | -10.9 | — | — | — |
| Franklin India Focused Equity Fund | -10.5 | 7.4 | 9.1 | 12.6 |
| SBI Consumption Opportunities Fund | -10.3 | 5.6 | 11.4 | 13.7 |
| Taurus Infrastructure Fund | -10.3 | 7.7 | 10.2 | 12.6 |
11 IT/Technology Funds List
| Fund Name | 1 Yr | 3 Yr CAGR | 5 Yr CAGR | 10 Yr CAGR |
|---|---|---|---|---|
| Bandhan Nifty IT Index Fund | -17.2 | -2.9 | — | — |
| Navi Nifty IT Index Fund | -17.2 | — | — | — |
| Axis Nifty IT Index Fund | -17.1 | -3.2 | — | — |
| SBI Nifty IT Index Fund | -17.0 | — | — | — |
| Nippon India Nifty IT Index Fund | -17.0 | — | — | — |
| ICICI Prudential Nifty IT Index Fund | -17.0 | -3.1 | — | — |
| DSP Nifty IT Index Fund | -16.9 | — | — | — |
| HDFC Technology Fund | -14.1 | 5.0 | — | — |
| Tata Digital India Fund | -13.1 | 3.6 | 1.7 | 17.2 |
| Franklin India Technology Fund | -11.0 | 8.5 | 5.9 | 16.0 |
| ICICI Prudential Technology Fund | -10.5 | 4.6 | 1.9 | 17.2 |
IT and Technology Funds Feature Prominently
One notable observation from the list is the number of IT and technology-focused mutual funds that have delivered negative returns during the last 1 year.
Seven Nifty IT index funds in the list have recorded losses of around 17%, while actively managed technology funds have also seen declines. HDFC Technology Fund lost 14.14%, Tata Digital India Fund declined 13.12%, Franklin India Technology Fund fell 11.04% and ICICI Prudential Technology Fund declined 10.48%.
The concentration of IT and technology funds in the list is not surprising given the sector-specific nature of these schemes. When the underlying sector faces a period of weakness, multiple funds following the same sector or theme can experience similar declines.
It is also worth noting that the seven Nifty IT index funds have very similar 1-year returns. This is because these schemes track the same underlying index, although their returns can differ marginally because of factors such as expense ratios and tracking differences.
We analysed these funds too earlier – 18 Mutual Funds With 1-Year Returns Above 20.0% : Sep-26 Update
Why Did These Mutual Funds Lose Money?
There is no single reason behind the negative performance of all these funds. The list contains sectoral, thematic, international and diversified equity funds, and each category can be affected by different factors.
Sector and thematic exposure is one of the key reasons. IT, FMCG, infrastructure, consumption and tourism-focused funds have relatively concentrated exposure compared with diversified equity funds. If the underlying sector underperforms, the mutual fund can also experience a significant decline.
International exposure can introduce another layer of volatility. The Mirae Asset Hang Seng TECH ETF FoF, for example, is exposed to the technology segment of the Hong Kong market. International funds can be influenced by developments in overseas markets, currency movements, interest rates and global investor sentiment.
Thematic and index funds can also experience sharp corrections when valuations in their underlying stocks fall. A fund may therefore report a substantial 1-year decline even though its underlying investment thesis remains unchanged over a longer period.
A 1-Year Loss Does Not Tell the Entire Story
Looking only at the latest 1-year return can sometimes give an incomplete picture of a mutual fund’s performance.
For example, ICICI Prudential FMCG Fund has delivered a -16.5% return over the latest 1-year period. Its 3-year CAGR is also negative at -3.0%, while its 5-year and 10-year CAGRs are positive at 4.3% and 9.1%, respectively.
Similarly, Franklin India Focused Equity Fund has delivered -10.5% over the last 1 year, but its 3-year, 5-year and 10-year CAGRs are positive at 7.4%, 9.1% and 12.6%, respectively.
SBI Consumption Opportunities Fund has generated -10.3% over the latest 1 year but has a 5-year CAGR of 11.4% and a 10-year CAGR of 13.7%. Taurus Infrastructure Fund has also delivered positive 3-year, 5-year and 10-year CAGRs despite its recent 1-year decline.
This illustrates why investors should examine multiple time periods before drawing conclusions about a mutual fund.
Also Read – 11 Mutual Funds With 5-Year Annualized Returns Above 20.0%
What Should Existing Investors Do?
Investors who already hold any of these funds should not make an investment decision solely because the fund has delivered a negative 1-year return.
The first step is to understand the reason for the decline. If the fund is sectoral or thematic, investors should be comfortable with the additional volatility that comes with concentrated exposure. If the fund is diversified, its performance should be compared with the appropriate benchmark and category average.
Investors should also look at the fund’s longer-term performance and rolling returns rather than focusing only on a single period. A temporary correction can look very different from persistent underperformance when viewed over a longer timeframe.
Another important consideration is portfolio allocation. If an investor has multiple funds with exposure to the same sector or theme, a decline in that sector can have a much larger impact on the overall portfolio. Investors may therefore want to review their overall asset allocation rather than evaluating one fund in isolation.
For investors considering fresh investments, the recent fall should not by itself be treated as a reason to buy. A lower NAV or recent correction does not automatically mean that a mutual fund has become attractive. The fund’s valuation, portfolio quality, investment strategy and long-term risk profile should also be considered.
Key Takeaways
- 22 equity mutual funds in our analysis delivered losses of 10% or more during the latest 1-year period.
- The decline ranges from around 10% to 24%.
- IT and technology-focused funds account for a significant portion of the funds in the list.
- Sectoral and thematic funds can experience higher volatility because of their concentrated exposure.
- A negative 1-year return does not necessarily indicate poor long-term performance.
- Investors should compare performance with the benchmark, category and longer-term returns before making investment decisions.
Disclaimer: Mutual fund investments are subject to market risks. This article is for educational and informational purposes only and should not be considered investment advice. Past performance does not indicate future returns. Investors should consider their investment objectives, risk tolerance and financial situation before investing.
- 22 Equity Mutual Funds That Lost 10% to 24% in 1 Year – Sep 2026 Update - September 28, 2026
- 15 Mutual Funds With 10-Year Annualized Returns Above 18.1% – Sep 26 Update - September 27, 2026
- 18 Mutual Funds With 1-Year Returns Above 20.0% (Sep-26 Update) - September 24, 2026