Mutual Funds generated good wealth in 2023 and 2024; however, they experienced a correction in the last few months. While there are over 750 equity mutual funds, several have underperformed even after the bull run that ended a few months ago. In this article we would talk about 5 Worst Performing Mutual Funds in the last 1 year (10-Jan-2024 to 9-Jan-2025) that generated negative returns.
Also Read:
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 excluded ETFs from this list, leaving us with a dataset of over 750 mutual funds.
- Filtered funds that generated lowest returns in the last 1 year.
- We got 5 funds that had generated negative returns between minus 24% to 0%. The returns are for direct plans. Means the returns for regular plans would have further impact.
- You might be wondering when Nifty has generated 8.5% returns in the past year and majority of the active funds generated double digit returns, how come there are mutual funds generating negative returns or zero returns. Let’s get into more details about such funds.
- If you are new to mutual funds, you can check our Mutual Fund Beginners Guide.
![5 Worst Performing Mutual Funds in the last 1 Year [-24% to 0%]](https://myinvestmentideas.com/wp-content/uploads/2025/01/5-Worst-Performing-Mutual-Funds-in-the-last-1-Year-24-to-0.jpg)
List of Top 5 Worst Performing Mutual Funds in the last 1 year
Here is the list of 5 Worst Performing Mutual Funds in the last 1 year.
#1 – HSBC Brazil Fund – 1 Year Return – Minus 24.0%
#2 – Mahindra Manulife Asia Pacific REITs FoF – 1 Year Return – Minus 5.6%
#3 – Invesco India Pan European Equity Fund of Fund – 1 Year Return – Minus 2.5%
#4 – DSP World Mining Fund – 1 Year Return – Minus 0.4%
#5 – Kotak International REIT FOF – 1 Year Return – 0%
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5 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 – HSBC Brazil Fund – 1 Year Return – Minus 24.0%
Investment Objective:
The primary investment objective of the Scheme is to provide long term capital appreciation by investing predominantly in units/shares of HSBC Global Investment Funds (HGIF) Brazil Equity Fund.
Performance Details
Absolute Returns of the fund
- 1-Year Return: minus 24.0%
- 3-Year Return: minus 7.2%
- 5-Year Return: minus 9.9%
- 10-Year Return: minus 11.9%
- Return since inception: minus 36.4%
Annualised Returns of the fund
- 1-Year Return: minus 24.0%
- 3-Year Return: 3.2%
- 5-Year Return: minus 9.5%
- 10-Year Return: minus 1.2%
- Return since inception: minus 3.7%
Our View:
- This is an international fund, and its underlying fund invests primarily in Brazilian companies.
- This fund has generated minus 3.7% annualised return since inception.
If you are invested in such funds, consider reviewing their performance and exiting if they no longer align with your financial goals.
#2 – Mahindra Manulife Asia Pacific REITs FoF – 1 Year Return – Minus 5.6%
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
- 1-Year Return: minus 5.6%
- 2-Year Return: minus 10.4%
- Return since inception: minus 16.5%
Annualised Returns of the fund
- 1-Year Return: minus 5.6%
- 2-Year Return: minus 3.6%
- Return since inception: minus 5.4%
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 and Frasers Logistics and commercial trust.
- This fund has generated minus 5.4% annualised return since inception.
- If you are invested in such funds, consider reviewing their performance and exiting if they no longer align with your financial goals.
#3 – Invesco India Pan European Equity Fund of Fund – 1 Year Return – Minus 2.5%
Investment Objective:
To generate capital appreciation by investing predominantly in units of Invesco Pan European Equity Fund, an overseas equity fund which invests primarily in equity securities of European companies with an emphasis on larger companies.
Performance Details
Absolute Returns of the fund
- 1-Year Return: minus 2.5%
- 3-Year Return: 15.2%
- 5-Year Return: 40.4%
- 10-Year Return: 86.1%
- Return since inception: 69.6%
Annualised Returns of the fund
- 1-Year Return: minus 2.5%
- 3-Year Return: 4.8%
- 5-Year Return: 7.0%
- 10-Year Return: 6.4%
- Return since inception: 4.9%
Our View:
- This is an international fund and underlying fund invests primarily in companies in European companies.
- This fund has generated 4.9% annualised return since inception. Even a safe bank FD has generated over 7% annualised returns in the last 10 years. Do we need to take risk for such low returns?
- If you are invested in such funds, consider reviewing their performance and exiting if they no longer align with your financial goals.
Also Read: 10 Best Mutual Funds to invest for long term in 2025
#4 – DSP World Mining Fund – 1 Year Return – Minus 0.4%
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
- 1-Year Return: minus 0.4%
- 3-Year Return: 4.8%
- 5-Year Return: 70.8%
- 10-Year Return: 127.5%
Annualised Returns of the fund
- 1-Year Return: minus 0.4%
- 3-Year Return: 1.57%
- 5-Year Return: 11.2%
- 10-Year Return: 8.5%
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 Glencore PLC, Rio Tinto PLC, Agnico Eagle, BHP Group, Freeport, Anglo American, Wheaton, Ivanhoe, Teck Resources and Barrick Gold Corp.
- This fund has generated 3.4% annualised returns since inception.
- Last year, we indicated that as per recent E&Y report, mining and metals sector will encounter a complex operating environment in 2024, with numerous challenges ahead. We could see the impact in the fund performance in the last 1 year too.
- 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 – Kotak International REIT FOF – 1 Year Return – 0%
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
- 1-Year Return: 0.0%
- 3-Year Return: minus 3.82%
- Return since inception: minus 2.2%
Annualised Returns of the fund
- 1-Year Return: 0.0%
- 3-Year Return: minus 1.2%
- Return since inception: minus 0.5%
Our View:
- This is an international fund and underlying fund invests primarily in companies in REITs in APAC region
- This fund has generated minus 2.0% absolute returns since inception.
- If you are invested in such funds, consider reviewing their performance and exiting if they no longer align with your financial goals.
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