10 Worst Performing Mutual Funds in the Last 15 Years (4.4% to 9.0% CAGR Returns)

Over the past 15 years, Indian and global markets have experienced major changes, from the aftermath of the global financial crisis to emerging market rallies, Covid-19-related volatility and tech-driven bull markets. Nevertheless, some mutual funds were unable to even offer a 9% return per year. These include international, sectoral and theme mutual funds that often pose higher volatility and concentration risks. In this article, we will bring you 10 worst performance mutual funds in the last 15 years (As of 5-6une-2025) 4.4% to 9.0% CAGR.

There is 11 mutual funds that lost 10% to 22% in 2025.

How did you identify these worst-performing mutual funds?

• It is considered an equity mutual fund that includes sectors, themes and international funds.
• Excluded ETFs and index funds.
• Funds sorted based on 15 years of CAGR returns.
• Only regular plans considered direct plans for mutual funds did not exist 15 years ago.
• Filtered 10 mutual funds offering low returns of 4.4% to 9.0% CAGR return The past 15 years.
• Data is from ValleSearch and MoneyControl as of June 5, 2025.

List of 10 Worst Mutual Funds in the last 15 years

Dive deep into these worst-performing mutual funds over the last 15 years

#1 – DSP World Mining Fund of Fund – 15-year CAGR: 4.4%

• Objective: BlackRock Global Funds – Invest in World Mining Funds.
• Annual returns:
  • 3 years: 1.5%
  • 5 years: 14.3%
  • 10 years: 10.4%
  • 15 years: 4.4%
• Cost Ratio: 1.51%
• beta: 0.65
• alpha: -9.12
• advantage: Exposure to global mining and metal stocks, potential hedges during commodity gatherings.
• risk: It is very cyclical, subject to global product demand and price fluctuations.
• Our view: This fund is extremely sensitive to the global commodity cycle and has seen a huge drawdown. Despite its high volatility, its low long-term returns are less suitable for long-term investors.

This fund was analyzed by us in a previous article. 10 worst performance mutual funds in a year.

#2 – DSP Global Clean Energy Fund Fund Fund – 15-year CAGR: 4.7%

• Objective: Invest in overseas clean energy ETFs/finances.
• Annual returns:
  • 3 years: 6.1%
  • 5 years: 8.5%
  • 10 years: 3.4%
  • 15 years: 4.7%
• Cost Ratio: 1.54%
• beta: 0.52
• alpha: -3.94
• advantage: Invest in the rising clean and renewable energy sector.
• risk: High valuation risk, regulatory dependence, and market cycle.
• Our view: While the global clean energy story remains promising, the fund’s inability to provide sustainable returns raises concerns. There are better options for global diversification.

This fund is part of a previous article 10 worst performance mutual funds in the last 10 years.

#3 – DSP World Gold FOF – 15 Year CAGR: 4.8%

• Objective: Provides exposure to global gold mining companies.
• Annual returns:
  • 3 years: 23.5%
  • 5 years: 13.4%
  • 10 years: 12.9%
  • 15 years: 4.8%
• Cost Ratio: 1.69%
• beta: 0.51
• alpha: 12.4
• advantage: It serves as a hedge against inflation and geopolitical risks.
• risk: It is highly volatile, cyclical and linked to gold prices.
• Our view: Very cyclic and volatile. It is suitable only for short-term allocations and not for long-term wealth building.

#4 – PGIM India Emerging Markets Equity Fund – 15-year CAGR: 5.2%

• Objective: We invest in emerging market companies except India.
• Annual returns:
  • 3 years: 11.0%
  • 5 years: 2.8%
  • 10 years: 3.3%
  • 15 years: 5.2%
• Cost Ratio: 1.39%
• beta: 0.48
• alpha: -0.05
• advantage: Diversified exposure to global EMS with long-term growth potential.
• risk: Political instability, currency risk, and poor fund performance.
• Our view: While global EM allocations make sense, the fund’s poor performance makes a questionable choice for a long-term portfolio.

#5 – Aditya Birla SL Global Emerging Opportunities Fund – 15-year CAGR: 6.1%

• Objective: Target long-term capital growth through global EM stocks.
• Annual returns:
  • 3 years: 11.2%
  • 5 years: 12.8%
  • 10 years: 8.5%
  • 15 years: 6.1%
• Cost Ratio: 0.61%
• beta: 4.32
• alpha: 1.69
• advantage: Access to global companies across sectors and regions.
• risk: Performance volatility and emerging market instability.
• Our view: Generated inline with bank FD returns. Investors should consider whether they can take risks and invest in such funds, or whether they can invest in simple FDs with zero or low risk.

#6 – HSBC Global Emerging Markets Fund – 15-year CAGR: 5.9%

• Objective: Exposure to global EM equity opportunities.
• Annual returns:
  • 3 years: 5.6%
  • 5 years: 7.2%
  • 10 years: 6.5%
  • 15 years: 5.9%
• Cost Ratio: 0.79%
• beta: 0.52
• alpha: -5.7
• advantage: International diversification, potential EM growth.
• risk: EM countries’ currency, political risks and poor performance.
• Our view: Negative alpha and inconsistent performance. It’s better to choose funds that focus on the broader global or US.

#7 – Kotak Global Emerging Market Fund – 2015 CAGR: 7.3%

• Objective: We invest in emerging markets around the world.
• Annual returns:
  • 3 years: 7.7%
  • 5 years: 8.2%
  • 10 years: 5.5%
  • 15 years: 7.3%
• Cost Ratio: 1.25%
• beta: Na
• alpha: Na
• advantage: Global EM exposure with potential benefits.
• risk: Market volatility, currency depreciation, and lower returns than benchmarks.

Our view: Suitable for investors who want limited EM exposure. Performance does not justify long retention periods.

This fund is part of a previous article we wrote. 10 worst performance mutual funds in the last five years.

#8 – Franklin Asia Equity Fund – CAGR of 15 years: 7.6%

• Objective: Invest in Asian companies (formerly Japan).
• Annual returns:
  • 3 years: 6.4%
  • 5 years: 5.4%
  • 10 years: 6.7%
  • 15 years: 7.6%
• Cost Ratio: 1.57%
• beta: 0.62
• alpha: -6.01
• advantage: Intensive exposure to high-growth Asian economy.
• risk: Region-specific risks such as trade wars and political instability.
• Our view: Despite access to growing Asian markets, the fund has not generated significant long-term wealth.

#9 – LIC MF Children’s Fund – CAGR of 15 years: 7.9%

• Objective: It aims to create long-term wealth for the future needs of children.
• Annual returns:
  • 3 years: 13.6%
  • 5 years: 15.6%
  • 10 years: 9.4%
  • 15 years: 7.9%
• Cost Ratio: 1.68%
• beta: 1.35
• alpha: -4.42
• advantage: Goal-based investments with equity debt mix.
• risk: Conservative allocations can reduce long-term returns.
• Our view: It is less attractive than its child-oriented funding peers. It may suit only conservative investors.

#10 – Sundaram Global Brand Theme FOF – 15 Year CAGR: 9.0%

• Objective: Invest in global companies with strong brand equity.
• Annual returns:
  • 3 years: 15.6%
  • 5 years: 13.1%
  • 10 years: 9.5%
  • 15 years: 9.0%
• Cost Ratio: 1.42%
• beta: Na
• alpha: Na
• advantage: Exposure to globally established consumer brands.
• risk: Intensive betting, global evaluation risk.
• Our view: Global brand investments can work in certain cycles. However, high volatility and assessment risks can limit long-term compounding.

Final Thoughts

If you are currently investing in any of these mutual funds, it is important to evaluate:

• Does this fund match your financial goals and risk profile?
• Are funds poor performance due to insufficient market cycle and capital management?
• Are there better options in similar categories?

Check short, medium and long term performance before finishing. Always consult your advisor before making portfolio-level changes.

Suresh KP is a veteran financial expert with over 20 years of experience. He is a NISM certified investment advisor and research analyst. For more information about his expertise and certification, please visit Suresh KP

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