This is a list of the worst-performing equity mutual funds over every possible five, four, and three periods between 1st Jan 2013 (introduction date of direct plans) to Dec 8th 2023.
Some caveats before we begin: (1) The definition of a “worst mutual fund” is as arbitrary as the definition of a “best mutual fund”. We hope it is a reasonable definition, considering the high fees demanded by the MF industry. According to a Morningstar study, this is one of the highest in the world. (2) We choose a representative category benchmark and compare the fund’s returns with the benchmark over the above-mentioned periods. The choice of the benchmark is also arbitrary but reasonably representative. (3) SEBI mutual fund categorization rules were implemented by May-June 2018. Some funds (particularly those from smaller AMCs) may have changed significantly in style after that. An exhaustive filtration taking these changes into account is beyond the capabilities of this study.
(4) A fund labelled as “worst” means a careful, deeper investigation of its past performance is necessary, particularly if you invest in it or consider future investments. (5) Sectoral funds/ thematic funds are compared with Nifty 100 TRI. As a data analyst, this choice is incorrect. However, as an investor, it makes sense, and that is more important! We are not trying to submit a thesis here! If a thematic fund fails against a large cap index, it is an avoidable fund for most investors.
How a worst mutual fund is defined
Say 800 five-year return periods are possible, 1025 four-year, and 1300 three-year return periods. We shall define a fund as “worst” if it has beaten the benchmark for less than 50% of the 5Y, 4Y and 3Y return periods.
Using our monthly Equity Mutual Fund Screener, we filter out all funds with a rolling return outperformance consistency of less than 50% over five, four, and three years, provided there are at least 1000 rolling return data points over five years. This will be our definition of a “worst fund”. We make no claim of superiority over this definition. While appreciating that not all readers will agree with the methodology used, we feel this is reasonable.
NOTE: Investors holding these funds need not exit them in a hurry. Please use this as a sign to dig deeper and re-evaluate these funds. A fund not on this list does not mean it is a “good fund” or an outperformer!
The filtration process
A total of 404 equity mutual funds were studied from these categories and against these benchmarks.
| Category | Benchmark |
| Aggressive Hybrid Fund | Crisil6535 |
| Dividend Yield Fund | Nifty 100 TRI |
| ELSS | N200TRI |
| Focussed Fund | Nifty Largemidcap 250 TRI |
| Large & Mid Cap Fund | Nifty Largemidcap 250 TRI |
| Large Cap Fund | Nifty 100 TRI |
| Mid Cap Fund | NiftyMidcap150TRI |
| Multi Cap Fund | Nifty Largemidcap 250 TRI |
| Flexi Cap Fund | Nifty Largemidcap 250 TRI |
| Sectoral/ Thematic | Nifty 100 TRI |
| Sectoral/ Thematic (international) | Nifty 100 TRI |
| Small Cap Fund | NiftyMidcap150TRI |
| Value Fund | Nifty 100 TRI |
We are left with 100 funds after applying the above filter.
Aggressive Hybrid Funds vs Crisil65:35 Aggressive Hybrid Index
| Aditya Birla Sun Life Equity Hybrid’95 Fund – Direct Plan-Growth |
| Baroda BNP Paribas Aggressive Hybrid Fund- DIRECT PLAN – GROWTH OPTION |
| JM Equity Hybrid Fund (Direct) – Growth Option |
| L&T Hybrid Equity Fund – Direct Plan-Growth |
| LIC MF Equity Hybrid Fund-Direct Plan-Growth |
| Nippon India Equity Hybrid Fund- Direct Plan Growth Plan |
| Shriram Hybrid Equity Fund- Direct Growth |
| Tata Hybrid Equity Fund -Direct Plan- Growth Option |
ELSS vs N200TRI
| Edelweiss Long Term Equity Fund (Tax Savings) – Direct Plan-Growth Option |
| Franklin India TAXSHIELD – Direct – Growth |
| HDFC Taxsaver – Growth Option – Direct Plan |
| HSBC Tax Saver Equity Fund – Growth Direct |
| IDBI Equity Advantage Fund – Growth Direct |
| L&TTax Advantage Fund-Direct Plan-Growth |
| LIC MF Tax Plan-Direct Plan-Growth |
| Nippon India Tax Saver Fund – Direct Plan Growth Plan – Growth Option |
| SBI LONG TERM EQUITY FUND – DIRECT PLAN -GROWTH |
| Sundaram Diversified Equity (ELSS) Direct Plan – Growth |
| Union Long Term Equity Fund – Direct Plan – Growth Option |
Dividend Yield Fund vs Nifty 100 TRI
| Aditya Birla Sun Life Dividend Yield Fund – Growth – Direct Plan |
| UTI-Dividend Yield Fund.-Growth-Direct |
Large Cap Fund vs Nifty 100 TRI
| Aditya Birla Sun Life Frontline Equity Fund – Growth – Direct Plan |
| DSP Top 100 Equity Fund – Direct Plan – Growth |
| Franklin India Bluechip Fund- Direct – Growth |
| HDFC Top 100 Fund – Growth Option – Direct Plan |
| HSBC Large Cap Equity Fund – Growth Direct |
| IDFC Large Cap Fund-Direct Plan-Growth |
| Indiabulls Blue Chip Fund – Direct Plan – Growth Option |
| JM Large Cap Fund (Direct) – Growth Option |
| L&T India Large Cap Fund – Direct Plan – Growth |
| LIC MF Large Cap Fund-Direct Plan-Growth |
| Navi Large Cap Equity Fund-Direct Plan-Growth Option |
| Tata Large Cap Fund -Direct Plan Growth Option |
| Taurus Largecap Equity Fund – Direct Plan – Growth |
Sectoral/ Thematic vs Nifty 100 TRI
| Aditya Birla Sun Life MNC Fund – Growth – Direct Plan |
| Baroda BNP Paribas Banking and Financial Services Fund – Direct – Growth Option |
| HDFC Infrastructure Fund – Growth Option – Direct Plan |
| HSBC Infrastructure Equity Fund – Growth Direct |
| ICICI Prudential Infrastructure Fund – Direct Plan -Growth |
| LIC MF Infrastructure Fund-Direct Plan-Growth |
| Nippon India Power & Infra Fund – Direct Plan Growth Plan – Growth Option |
| Nippon India Quant Fund – Direct Plan Growth Plan – Growth Option |
| SBI PSU Fund – DIRECT PLAN – GROWTH |
| Sundaram Infrastructure Advantage Fund Direct Plan – Growth |
| UTI – MNC Fund – Growth Option – Direct |
| UTI Banking and Financial Services Fund – Direct Plan – Growth Option |
| UTI India Consumer Fund – Direct Plan – Growth Option |
| UTI Infrastructure Fund-Growth Option- Direct |
Sectoral/ Thematic (international) vs Nifty 100 TRI
| Aditya Birla Sun Life Commodity Equities Fund – Global Agri Plan – Growth – Direct Plan |
| Aditya Birla Sun Life International Equity Fund – Plan A – Growth – Direct Plan |
| Aditya Birla Sun Life International Equity Fund – Plan B – Growth – Direct Plan |
| Franklin Asian Equity Fund – Direct – Growth |
| Nippon India Japan Equity Fund- Direct Plan- Growth Plan- Growth Option |
Value Fund vs Nifty 100 TRI
| UTI Value Opportunities Fund- Direct Plan – Growth Option |
Flexicap vs Nifty Largemidcap 250 TRI
| Franklin India Flexi Cap Fund – Direct – Growth |
| HDFC Flexi Cap Fund – Growth Option – Direct Plan |
| HSBC Flexi Cap Fund – Growth Direct |
| IDBI FLEXI CAP FUND Growth Direct |
| L&T Flexicap Fund-Direct Plan-Growth |
| LIC MF Flexi Cap Fund-Direct Plan-Growth |
| Motilal Oswal Flexi cap Fund Direct Plan-Growth Option |
| Taurus Flexi Cap Fund – Direct Plan – Growth |
| Union Flexi Cap Fund – Direct Plan – Growth Option |
Focussed Fund vs Nifty Largemidcap 250 TRI
| Aditya Birla Sun Life Focused Equity Fund – Growth – Direct Plan |
| DSP Focus Fund – Direct Plan – Growth |
| HDFC Focused 30 Fund – Growth Option – Direct Plan |
| ICICI Prudential Focused Equity Fund – Direct Plan – Growth |
| IDFC Focused Equity Fund-Direct Plan-Growth |
| Motilal Oswal Focused 25 Fund (MOF25)- Direct Plan Growth Option |
Large & Mid Cap Fund vs Nifty Largemidcap 250 TRI
| Aditya Birla Sun Life Equity Advantage Fund – Growth – Direct Plan |
| BOI AXA Large & Mid Cap Equity Fund Direct Plan-Growth |
| Franklin India Equity Advantage Fund – Direct – Growth |
| HDFC Large and Mid Cap Fund – Growth Option – Direct Plan |
| ICICI Prudential Large & Mid Cap Fund – Direct Plan – Growth |
| IDFC Core Equity Fund-Direct Plan-Growth |
| L&T Large and Midcap Fund-Direct Plan-Growth |
| Nippon India Vision Fund – Direct Plan Growth Plan – Growth Option |
| Tata Large & MId Cap Fund -Direct Plan- Growth Option |
| UTI – Core Equity Fund – Direct Plan – Growth Option |
Multi Cap Fund vs Nifty Largemidcap 250 TRI
| Baroda BNP Paribas MULTI CAP FUND – Direct Plan – Growth Option |
| ICICI Prudential Multicap Fund – Direct Plan -Growth |
| IDFC MULTI CAP FUND – GROWTH – DIRECT PLAN |
| Invesco India Multicap Fund – Direct Plan – Growth Option |
| Nippon India Multi Cap Fund – Direct Plan Growth Plan – Growth Option |
Mid Cap Fund vs NiftyMidcap150TRI
| Aditya Birla Sun Life Midcap Fund – Growth – Direct Plan |
| BARODA BNP PARIBAS Mid Cap Fund – Direct Plan – Growth Option |
| Franklin India Prima Fund – Direct – Growth |
| ICICI Prudential MidCap Fund – Direct Plan -Growth |
| Motilal Oswal Midcap 30 Fund (MOF30)-Direct Plan-Growth Option |
| quant Mid Cap Fund – Growth Option – Direct Plan |
| Sundaram Mid Cap Fund Direct Plan – Growth |
| Taurus Discovery (Midcap) Fund – Direct Plan – Growth |
| UTI Mid Cap Fund-Growth Option- Direct |
Small Cap Fund vs NiftyMidcap150TRI
| Aditya Birla Sun Life Small Cap Fund – Growth – Direct Plan |
| Franklin India Smaller Companies Fund – Direct – Growth |
| HSBC Small Cap Equity Fund – Growth Direct |
| ICICI Prudential Smallcap Fund – Direct Plan – Growth |
| Sundaram Small Cap Fund – Direct Plan – Growth Option |
| Union Small Cap Fund – Direct Plan – Growth Option |
To reiterate: Investors holding these funds need not exit them quickly. Please use this as a sign to dig deeper and re-evaluate these funds. A fund not on this list does not mean it is a “good fund” or an outperformer!
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