The Indian stock market was strong in 2023 and 2024, and has undergone revisions in recent months. Nifty has generated 12% returns over the past three years. Not everything is rosy. There are also some mutual funds that have also generated returns of less than 5%. You know, when Nifty has been positive over the past three years and the majority of active funds have produced double digit returns, why do mutual funds produce negative or low returns? Let me explain in detail about such funds. This article explains about 10 worst performance mutual funds in the last three years (8-FEB-2022 to 7-FEB-2025).
How did you identify these worst-performing mutual funds?
- We have considered all equity mutual funds, including sectoral and theme funds and global funds.
- ETFs were excluded from the analysis.
- We filtered bottom 10 funds based on three years of returns.
- These 10 funds have earned 3% returns from 3%, minus 3% over the past three years. The means means you have peace of mind earning more money if you keep your money in a simple bank savings account that is generated between 3% and 6% with zero risk.
If you are not aware of the mutual fund category, you can explore it Different types of mutual funds In India.
Let’s take a deeper look at them.
A list of 10 worst performance mutual funds in the last three years
Here are the 10 worst mutual funds based on 3-year returns:
#1 – Edelweiss Greater China Equity Offshore Fund – 3 Year Returns: -3.24%
#2 – Mahindra Manulife Asia Pacific Reits FOF – 3 Year Returns: -3.0%
#3 – Axis Greater China Equity FOF – 3 Year Returns: -1.5%
#4 – Edelweiss Emerging Market Opportunity Equity Offshore Fund – 3 Year Profit: 0.04%
#5 – Kotak International REIT FOF – 3-year return: 0.08%
#6 – Franklin Asia Equity Fund – 3 Year Return: 0.5%
#7 – HSBC Global Emerging Markets Fund – 3-year revenue: 1.6%
#8 – PGIM India Emerging Markets Equity Fund – 3-year return: 2.0%
#9 – Kotak Global Emerging Market Fund – 3-year revenue: 2.3%
#10 – HSBC Brazil Fund – 3 Year Returns: 2.4%
Dive deep into these worst-performing mutual funds
Let’s explore these funds, their objectives, their performance and our views in detail.
#1 – Edelweiss Greater China Equity Offshore Fund – 3 Year Return: -3.24%
Investment objective: To provide long-term capital gains by investing in JPMorgan Funds – Greater China Funds are primarily for businesses residing or in operation in major parts of economic activity in major cities. It is an equity fund that invests in a diverse portfolio. region.
Absolute Fund Returns
- 1 year return: 27.2%
- 3 Year Returns: -10.8%
- 5-year returns: 23.8%
- 10-year returns: 128.5%
Annual revenue from the fund
- 1 year return: 27.2%
- 3 Year Returns: -3.24%
- 5 years return: 4.3%
- 10-year returns: 8.6%
Our view:
- The fund has faced volatility over the past three years due to slowing China’s economic slowdown and regulatory issues, but has recovered over the past year.
- If you own this fund, we recommend checking its performance and considering switching to a good-performing international equity fund.
#2 – Mahindra Manulife Asia Pacific REITS FOF – 3 Year Returns: -3.0%
Investment objective: The scheme provides long-term capital gains by investing primarily in units of the Manulife Global Fund Asia Pacific REIT Fund, an overseas fund that invests primarily in real estate investment trusts (REITs) in principal areas of the Asia Pacific principal area. You’re about to do so.
Absolute Fund Returns
- 1 year return: 1.2%
- 3 Year Returns: -8.8%
- Return since its establishment: -14.6%
Annual revenue from the fund
- 1 year return: 1.2%
- 3 Year Returns: -3.0%
- Return since its establishment: -4.6%
Our view:
- This is a global fund, and the underlying fund mainly invests in former Japanese REIT companies in Asia-Pacific.
- Since its establishment, the fund has produced negative returns.
- The REIT sector is struggling with rising interest rates and slowing the economy.
- Investors should reassess their holdings and consider alternative real estate funds with better performance.
#3 – Axis Greater China Equity FOF – 3 Year Revenue: -1.5%
Investment objective: By investing in securities related to equity and fairness of China, Hong Kong SAR and Taiwanese companies, to provide long-term capital gains, primarily by investing in units at Schroeder International Selection Fund Greater China; It is a fund aimed at providing capital growth.
Absolute Fund Returns
- 1 year return: 25.2%
- 3 Year Returns: -4.5%
- Return since its establishment: -21.3%
Annual revenue from the fund
- 1 year return: 25.2%
- 3 Year Returns: -1.5%
- Return since its establishment: -5.8%
Our view:
- Ongoing geopolitical tensions and economic concerns have impacted returns.
- Investors need to closely monitor the fund and explore other emerging market funds.
#4 – Edelweiss Emerging Markets Opportunities Equity Fund – 3-year return: 0.04%
Investment objective: The main investment objective of this scheme is to ensure long-term capital growth by investing primarily in the JPMorgan Funds – Emerging Markets Opportunities Fund, an equity fund that invests in an aggressively managed portfolio of emerging market companies. It’s about trying to provide.
Absolute Fund Returns
- 1 year return: 12.6%
- 3 years return: 0.1%
- 5 years return: 17.3%
- 10-year returns: 73.3%
Annual revenue from the fund
- 1 year return: 12.6%
- 3 years return: 0.04%
- 5-year returns: 3.2%
- 10-year returns: 5.6%
Our view:
- The fund performs less than its peers.
- There is no problem with funds investing based on investment goals, but the underlying market is performing.
- The fund could not double its money in a 10-year time frame. Even if you consider it Latest Kisan Vikas Patra Interest Rates (lower than it was a few years ago), investments doubled within 10 years.
- Consider reassigning to more stable, higher performance international funds.
#5 – Kotak International REIT FOF – 3-year return: 0.08%
Investment objective: Provides long-term capital appreciation and revenue by investing in units of SumAsia REIT Subtrust Fund and/or other similar overseas REIT Funds.
Absolute Fund Returns
- 1 year return: 5.5%
- 3-year return: 0.25%
- Return since its establishment: -0.07%
Annual revenue from the fund
- 1 year return: 5.5%
- 3 years return: 0.08%
- Return since its establishment: -0.02%
Our view:
- The fund primarily invests in REIT companies in the APAC region.
- Fund performance is weaker due to challenges in the global real estate sector.
- Since its inception, the fund has generated annual revenues from 0.02% negative.
- Investors should consider switching to funds that focus on better-performing REITs.
#6 – Franklin Asia Equity Fund – 3 Year Return: 0.5%
Investment objective: Provides medium to long-term capital gains by investing in Asian companies and sectors. This fund excludes Japan from its investment.
Absolute Fund Returns
- 1 year return: 19.1%
- 3 years return: 1.7%
- 5-year returns: 19.9%
- 10 years return: 94.4%
Annual revenue from the fund
- 1 year return: 19.1%
- 3 years return: 0.5%
- 5-year returns: 3.7%
- 10-year returns: 6.8%
Our view:
- The fund is behind many of its peers in the Asian equity segment.
- Investors may want to see other funds with a stronger track record.
Investors need to explore too Best International Mutual Funds of 2025 Invest based on risk appetite.
#7 – HSBC Global Emerging Markets Fund – 3-year revenue: 1.6%
Investment objective: The fund invests in emerging market stocks around the world.
Absolute Fund Returns
- 1 year return: 20%
- 3-year return: 5.0%
- 5-year returns: 31.5%
- 10-year returns: 84.4%
Annual revenue from the fund
- 1 year return: 20%
- 3 years return: 1.6%
- 5 years return: 5.6%
- 10-year returns: 6.3%
Our view:
- The fund’s performance is inconsistent.
- Investors should monitor and consider alternative global funds.
#8 – PGIM India Emerging Markets Equity Fund – 3-year return: 2.0%
Investment objective: The fund focuses on emerging markets outside of India.
Absolute Fund Returns
- 1 year return: 24.6%
- 3-year return: 5.9%
- 5-year return: 14.2%
- 10-year returns: 49.4%
Annual revenue from the fund
- 1 year return: 24.6%
- 3-year return: 2.0%
- 5-year return: 2.7%
- 10-year returns: 4.1%
Our view:
- The fund’s returns are poor.
- Consider switching to a more stable emerging market fund.
#9 – Kotak Global Emerging Market Fund – 3-year revenue: 2.3%
Investment objective: The fund is investing in global emerging markets.
Absolute Fund Returns
- 1 year return: 10.0%
- 3 years return: 7.1%
- 5-year returns: 38.0%
- 10-year returns: 80.6%
Annual revenue from the fund
- 1 year return: 10.0%
- 3 years return: 2.3%
- 5-year returns: 6.6%
- 10 years return: 6.0%
Our view:
- The fund achieved very low returns. Even a simple bank FD would have gotten a higher return
- Investors need to assess their performance against stronger global funds.
#10 – HSBC Brazil Fund – 3 Year Returns: 2.4%
Investment objective: Provide long-term capital gains primarily by investing in units/subsidized in HSBC Global Investment Funds (HGIF) Brazilian equity funds.
This was the top fund found in an article last month. The worst performance mutual fund of the year.
Absolute Fund Returns
- 1 year return: -12.3%
- 3 years return: 7.5%
- 5-year return: -27.0%
- 10-year returns: 6.3%
Annual revenue from the fund
- 1 year return: -12.3%
- 3 years return: 2.4%
- 5-year return: -6.1%
- 10-year returns: 0.6%
Our view:
- The fund invests in Brazilian companies, and the volatility in the Brazilian market has impacted returns.
- The fund has generated 2% annual revenue since its inception.
- Investors need to review and consider funding in more diverse emerging markets.
Final thoughts
If you are investing in any of these mutual funds, check and consider its performance Better mutual fund for long-term wealth creation in 2025 It is based on your risk appetite, your financial goals, and how much you want to invest in them.
Find out more from myinvestmentideas.com
Subscribe and send your latest posts to email.
